food processing sector skills study -...

Punjab Skills Development Fund

2015

FOOD PROCESSING SECTOR SKILLS STUDY FINAL REPORT

2

Food processing Sector Skills Study -Punjab Skills Development Fund

Final Report

SIDAT HYDER MORSHED ASSOCIATES (PVT) LTD MANAGEMENT CONSULTANTS

Disclaimer

Sidat Hyder Morshed Associates (Pvt.) Ltd. has taken due care in conducting this survey and

analyzing and reporting the findings. Applicable Quality Assurance processes have been

applied to ensure that information, retrieved from our respondents during the survey, and

provided in the body of this report is accurate and consistent.

Information in this report may be subject to update, modification and amendment. Bulk of the

information for this survey was provided by the survey respondents including government

ministries/organizations, associations; senior management at organizations, training service

providers, sector experts and other stakeholders associated with the food processing industry

(see Annexes). Additional information was obtained through desk research. The information

contained herein is believed to be accurate as reported by the respondents.

Views presented herein belong to the survey respondents and the secondary sources of

information and do not necessarily reflect the views of the consultants unless otherwise

explicitly stated.

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Acronyms

CAGR Compound Annual Growth Rate CIP Cleaning in Place

COTHM College of Tourism &Hotel Management CY Calendar Year DAE Diploma of Associate Engineering DFID Department For International Development EBM English Biscuit Manufacturers FPCCI Federation of Pakistan Chambers of Commerce & Industry FY Financial Year HACCP Hazard Analysis and Critical Control Points HEC Higher Education Commission HIRC Halal Industry Research Centre Pakistan HRD Human Resource Development ICT Information &Communication Technology IFTECH Pakistan International Food Technology Exhibition LCCI Lahore Chamber of Commerce & Industry NAVTTC National Vocational & Technical Training Commission OJT On the Job Training PAMCO Punjab Agriculture and Meat Company PARC Pakistan Agricultural Research Council PBIT Punjab Board of Investment and Trade PBTE Punjab Board of Technical Education PCSIR Pakistan Council for Scientific and Industrial Research PSDF Punjab Skills Development Funds PEORA Pakistan Edible Oil Refiners Association PFA Punjab Food Authority PFMA Pakistan Flour Mills Association PIDE Pakistan Institute of Development Economics PITAD Pakistan Institute of Trade and Development PSQCA Pakistan Standards and Quality Control Authority PTA Pakistan Tanners Association PVMA Pakistan Vanaspati Manufacturers Association SMEDA Small and Medium Enterprises Development Authority QC Quality Control TDAP Trade Development Authority of Pakistan TSPs Training Service Providers TVET Technical and Vocational Education and Training

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Table of Contents

Executive summary Page 09 -17

1. Introduction Page 18- 21

1.1. Importance of the Sector 1.2. Background and Purpose of the Study 1.3. Scope of Work 1.4. Objectives of The Study 1.5. Structure of The Report 2. Methodology Page 22-30

2.1. Detailed Methodology 2.2. Initial Meeting/Stakeholder Meeting 2.3. Desk Review of Literature, Data, Available Information 2.4. Sample Design and Selection 2.5. Survey Instruments 2.6. Pre-Test/ Pilot Test of Survey 2.7. Survey Administration Data Collection Methods 3. Profiling the Food Processing Sector- Literature Review Page 31- 41

3.1. Introduction 3.2. Overview of Food Processing Industry 3.3. Clusters of Processed Food Sector In Pakistan 3.4. Edible Oil and Fats 3.5. Beverage Production 3.6. Bakery and Confectionery 3.7. Employment in Processed Food Industry INDUSTRY 4. Findings of the Formal and Informal Establishments’ Survey 2-67

4.1 Respondent’s Profile 4.2 Work Force Characteristics 4.3 Skills Assessment 4.4 Recruitment And Selection 4.5 On the Job Training 4.6 Off the Job Training 4.7 Training Service Providers 4.8 Awareness of PSDF 5. DETAILED FINDINGS –TRAINING SERVICE PROVIDERS Page 68- 76

5.1. Introduction 5.2. Summary of Key Findings 5.3. Profile and Courses Offered 5.4. Course Selection Criteria 5.5. Development of Curriculum And Course Content 5.6. Affiliations/Partnerships

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5.7. Accreditation 5.8. Recruitment of Training Staff 5.9. Post Training Facilities/Placements for Graduates. 5.10. Plans For Expansion 5.11. Awareness Of PSDF 6. Detailed Findings – Sector Experts Page 77- 88

6.1 Introduction 6.2 Food Processing Industry - Global Perspective 6.3 Food Processing Industry in Pakistan 6.4 Food Processing- Skills Required and Skills Gaps 6.5 Hard To Fill Vacancies 6.6 On- The – Job Training (OJTs) 6.7 Off-The-Job Training 6.8 Technical and Vocational Education (TVE) in the Food Processing Sector 6.9 Awareness of PSDF 6.10 Government Sector

7. Summary of Key findings Page 89- 104

7.1 Introduction 7.2 Key Findings of Study 7.3 Demand Projections For Trainings In The Food Processing Sector 7.4 Conclusions 7.5 Recommendations

Annexure

1. List of Formal Establishments 2. List of Informal Establishments 3. List of Training Service providers 4. List of Sector Experts 5. Courses Levels 6. Local and Foreign Partnerships 7. Accreditation Profiles 8. Survey Questionnaire 9. TSP Guide 10. Sector Expert Guide 11. Organizational Profile-TSPs 12. Scope of Work 13. Sources of Information 14. Tasks Performed 15. Skills Requirements and Training Needs

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List of Tables

1. Snapshot of Respondent Companies’ Profile……………………………………………………………………..9

2. Overall Recruitment Scenario – Food Processing Sector ...................................................................... 10

3. Skills Required at all Levels-Non Sector Specific ...................................................................................... 13

4. Skills required within each Sub-Sector......................................................................................................... 14

5. Overall Skills – Employers’ Perspective ....................................................................................................... 15

6. Trainings Demand in next 5 Years ................................................................................................................. 16

7. Primary and Value Added Processed Food Covering in scope of study .......................................... 19

8. Summary of Chapters ........................................................................................................................................... 20

9. Geographic Distribution ..................................................................................................................................... 25

10. Region wise Sub-Sectors’ Breakup (Formal Sector) ............................................................................... 25

11. Region wise Bifurcation Of Sample (Informal Establishments) ......................................................... 26

12. Sector Experts ......................................................................................................................................................... 26

13. Total Quantitative Surveys and IDIs (TSPs and Experts) ...................................................................... 27

14. Sorted by Export Value In 2013....................................................................................................................... 32

15. Clusters of Industries – Food Products and Beverages ............................................................................... 33

16. Area and Production of Major Oilseed Crops ............................................................................................. 36

17. Total Nos. of Vegetable Oil and Ghee Units ................................................................................................. 37

18. Production of Beverages ..................................................................................................................................... 38

19. Largest Countries by Agricultural Output ................................................................................................... 39

20. Production (Tonnes) ............................................................................................................................................ 39

21. Number of Flour Mills .......................................................................................................................................... 39

22. Production of Food Grains ................................................................................................................................. 40

23. Total Number of Employment in Punjab ..................................................................................................... 41

24. Organization Size Criteria .................................................................................................................................. 42

25. Bifurcation of Respondent Companies with Respect to Nature and size of companies ........... 43

26. Region Wise Industry Breakup ........................................................................................................................ 44

27. Organization Size VS Owner Ship of the company ................................................................................... 45

28. Local Market ............................................................................................................................................................ 46

29. International Market ............................................................................................................................................ 46

30. Production Facility VS Nature Of Companies ............................................................................................. 47

31. Sub- Sector and Products ................................................................................................................................... 48

32. Average Number of Employees with respect to organization size……………………………………..49 33. No of Employees VS Job Titles………………………………………………………………………………………...50

34. Workers Salary Ranges ....................................................................................................................................... 51

35. Qualification VS Roles Grid (out of 185 Respondents)……………………………………………………...52 36. Qualification (Relevant to Food Processing only) .................................................................................... 53

37. Skills Assessment - Food Processing Sector ............................................................................................... 54

38. Reasons and Measures taken-Hard to Find Skills .................................................................................... 55

39. Skills Required in Future for Specific Role (Listed in descending order) ...................................... 56

40. Overall Recruitment Scenario of Industry................................................................................................... 59

41. Methods employed to Provide OJTs ............................................................................................................... 60

42. Training Courses provided ................................................................................................................................ 63

43. TSPs of Food Processing Industry .................................................................................................................. 65

44. No of Trainees per Year ...................................................................................................................................... 66

45. Awareness about PSDF…………………………………………………………………………………………………..67

46. Knowledge about PSDF role in Punjab ......................................................................................................... 67

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47. Post Successful Completion ............................................................................................................................... 69

48. Hard to Fill Vacancies .......................................................................................................................................... 82

49. Skills Require on the Job Training .................................................................................................................. 83

50. Skills Required off the Job Training ............................................................................................................... 84

51. Skills that Require Technical and Vocational Trainings ........................................................................ 85

52. Employment in Food Processing Sector ...................................................................................................... 92

53. Pattern of Employment ....................................................................................................................................... 93

54. Employment by Management Cadre ............................................................................................................. 93

55. Demand Projections for Training in Food Processing Sector ............................................................. 94

56. Demand and Supply Scenario-2019 ............................................................................................................... 97

57. Skills Scenario in Food Processing Sector ................................................................................................. 102

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List of Figures

1. Components of Methodology .......................................................................................................22

2. Clusters of Pakistan Food Industries by Province......................................................................33

3. Clusters of Food Processing Units in the Punjab ........................................................................34

4. Bifurcation of Respondent Companies with respect to size of companies and geographical

presence.........................................................................................................................................43

5. Entity Registration ........................................................................................................................43

6. Respondent Companies with respect to nature of companies and type of industry ......................... 44

7. Type of Business .................................................................................................................................................... 44

8. Type of Ownership ................................................................................................................................................ 45

9. Annual Sales Turnover ........................................................................................................................................ 46

10. Production Facility ........................................................................................................................47

11. Production Facility VS Nature of Companies ............................................................................................. 47

12. Number oF Employees with respect to industry type............................................................................ 49

13. Employment Status ............................................................................................................................................... 50

14. Turn Over Rate .......................................................................................................................................................... 51

15. Methods of Recruitment and Selection ............................................................................................................ 59

16. Reasons for not providingOJTs(out of 92 Establishments) ......................................................................... 60

17. Establishments Allocating Budgets for Off The Job Training ...................................................................... 61

18. % of Training Expenditure Spent on Off the Job Training ........................................................................... 61

19. Willing to Pay Salary/Stipend ............................................................................................................................... 62

20. Reasons for not willing to Relieve Workers for Trainings Off Site ............................................................ 62

21. Awareness of TSPs .................................................................................................................................................... 64

22. Willingness To Provide OJTs .................................................................................................................................. 65

23. Reasons for not Providing Practical and Theoretical Training ................................................................... 66

24. Intentions to Setup Food Processing Training Centers in Premises.........................................67

25. Filevel of Involvement (Multiple Responses-36 Respondents) ................................................87

26. Demand and Supply Gap- 2015 and 2019 ..................................................................................98

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Executive Summary

The Food Processing Sector in the Punjab represents the potential to drive employment over the coming years by virtue of its continued growth in the province. Punjab Skills Development Fund (PSDF) has commissioned Sidat Hyder Morshed Associates (Pvt.) Ltd to conduct a survey of Food Processing establishments within the province in order to determine current and projected food processing related technical and vocational training requirements. What follows is a summary of the emergent findings of the survey.

The methodology was developed in response to the Terms of Reference (TOR) and scope of work0F

1 provided by PSDF. The study comprised of both qualitative (36 in-depth interviews with sector experts and 12 in-depth interviews with Training Service Providers) and quantitative (185 structured interviews with the Food Processing establishments in Punjab) data gathering supported by extensive desk research. The survey instruments (Survey Questionnaire and discussion guidelines for In-Depth Interviews with TSPs and sector experts) were designed by SHMA and approved by PSDF. Both the In-Depth Interviews’ guides and questionnaire were pre-tested before its final application in the field. The study, as per TOR document, covers establishments involved in the production of primary processed food and value added processed food mentioned in ‘Table -7, Chapter- 1’ of this report.

The Food Processing units under study were mostly sole proprietors (60% of the total 185 respondent companies) followed by private limited companies (27%). In terms of ‘company size’ category, majority of the units were micro and small size (up to 30 employees: 71% of the total respondents companies). Further annual sales turnover of majority of the respondent companies (78%) was less than 10 million and 71% of the total surveyed companies were using manual with hand and machine tools operations. A summarized picture of “Respondent Companies’ Profile” is depicted in the following table.

TABLE 1: SNAPSHOT OF RESPONDENT COMPANIES’ PROFILE

Company Size (No. of Employees)

% Annual sales turnover

% Industry Representation

% Type of Ownership

% Level of Automation

%

Less than 10 employees 39

Less than 1 Million

62 Processed Foods 59

Proprietorship 60

Manual with hand tools 47

11 – 30 employees

32 1-10 Million

16 Edible Oils

6 Partnership

12 Manual by Machine

24

31 – 99 employees

14 11-30 Million

9 Beverages

5 Private limited

27 Fully Automated

16

100 and above employees

15 30 and Above

13 Bakers and Confectionery

30 Public Limited

1 Semi-Automated

13

1Please see attached Annexure 12-Scope of Work

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The workforce under study was mapped as per ISCO (International Standard Classification of Occupation) Standard. It was observed that the major workforce in the food processing sector (66%) falls under skill level 3, comprising clerical and support workers, plant/machine operators, craft and trade related workers and other skilled workers (semi-skilled). Though the food sector is mainly male dominated, women have their representation at all levels. The study found that the level of education for each job group was lower than the desired level. Moreover, workforce with food-related qualifications, diplomas or degrees was minimal.

Based on the quantitative survey findings, placing advertisements in leading newspapers is the most preferred mode of hiring workers at all levels. However, notices at factory gates are usually put up to hire semi/unskilled workers. Labor intermediaries play a negligible role in the hiring process. Around 3700 workers were hired during the last 2 years across all levels. Major recruitment (for both new hires as well as replacement workers) was made for ‘plant and machine operators’ and ‘other skilled workers’ categories. Survey results also indicate that majority of the workers hired under these categories were at least Higher School Certificate (HSC) qualified, whereas, workers hired under managers’ and Technicians/Associate Professional categories were mostly bachelors or technical diploma holders. Furthermore, the major proportion of the currently available vacancies falls in the same job group (plant and machine operators and food processing related skills) which is also considered as ‘Hard to Fill’. And in views of quantitative survey respondents and sector experts major reasons of having these ‘Hard to Fill’ vacancies are; lack of required skills/specialized skills and qualifications, lack of theoretical and practical trainings at institutes, and lack of hand on exposure to a variety of materials and tools, etc.

TABLE 2: OVERALL RECRUITMENT SCENARIO – FOOD PROCESSING SECTOR

Type of Workers Hired

Total Number of Workers

Hired

Hired on New

Positions

Hired as Replacement

Still Working

No. of Current

Vacancies

No. of Hard-To-Fill

Vacancies

Managers 219 104 115 181 84 45

Technicians and Associate Professionals

445 324 121 382 11 7

Craft & Related Trade Workers

388 194 194 352 8 5

Plant and Machine Operators

532 266 266 469 31 25

Clerical Support Workers

430 215 215 379 17 11

Other Skilled Workers

1116 558 558 906 206 69

Elementary Occupations

548 388 160 458 182 60

Total 3,678 2,049 1,629 3,407 539 222

The nature of work in the food processing sector is process based rather than people based and employers in flatter structures mostly prefer to hire raw hands and train them as per their requirements. Workers at these entities are required to perform multiple tasks and are trained over a period of time by working closely under direct supervision of trained personnel/ Ustaads/Karigars.

It was found that out of total 185 respondents, on the job trainings (OJTs) are being provided by 50% of the participating organizations, whereas, the other half (92 establishments) are not providing OJTs to their staff. The most common reasons cited for this are; lack of trained

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personnel and expertise to provide the trainings (54% - 49 out of 92 establishments), lack of facilities required to provide OJTs (34%) and the nature of work that does not require trainings (7%).

Majority of the organizations (82% - 152 respondent companies) do not provide off-site training to employees. The main reasons cited are in line with the comments made by the sector experts on the availability of off-site training options and are as follows.

Lack of funds for trainings Trained employees switch jobs, are poached by others, or demand impractical

raises in salary Limited training options for desired skills and employers prefer on-the-job

trainings Training level does not meet the standards required by the industry

Off-site training options are available only to senior level employees (manager / technical staff) of large sized firms. They mostly attend training/seminars/workshops on latest development in food processing i.e. Food Preservation, Food Science and Engineering and Latest Technology in use. These organizations generally have pre-approved annual budgets for training. The vendors (for new plant and equipment acquired by firms) provide both on-site and off-site trainings to staff. However it is usually limited to senior staff only.

Awareness for Training Service Providers (TSPs)-The level of awareness for training service providers both amongst establishments and sector experts is very low. Majority of the respondents claimed that they have not received any kind of information from these institutes in the past 4-5 years. They have displayed a lack of interest in hiring graduates in food related disciplines as in their opinion; the students not only lack practical expertise but are unable to apply the theoretical knowledge gained into practical experience. The skills mainly taught are neither desired by the industry nor are up to the mark. Two third of the respondents from the establishments’ survey have shown unwillingness to provide any kind of practical training to university students/graduates in food related disciplines. Key reasons highlighted are; poor attitude of the interns (unwilling to work/learn, poor response to supervisors /co-worker) and unavailability of training resources (training expertise and facilities). They have also shown lack of interest in establishing training facilities within their premises.

Emergent Training Needs-Based on the quantitative survey findings, a list of top most

requested training courses (provided for core, non-sector specific and sector specific skills) for

each sub-sector is given below:

CORE AND NON SECTOR-SPECIFIC SKILLS Managerial and Administrative Skills Communication Skills Problem Solving Skills Numeracy Skills Food Technologist/ Bio technologist Food Preservation techniques Food Quality Assurance/Quality Control Plant and Machine Operating and repairing Skills

SECTOR SPECIFIC SKILLS Value added and frozen food processing

Cooking and Frying techniques

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Food Tasting and Food Grading Skills Visual Examination for Quality Product/ Sorting /Grading

Edible Oils and Fats

Technical knowledge of the products Oil expeller operating skills

Beverage Production

Bottling Skills Transportation skills

Bakery and Confectionery

Baking Skills Pastry Cooking Skills Chocolate Making Skills Biscuits Dough and Batter making Skills

INTERVIEWS WITH TRAINING SERVICE PROVIDERS AND SECTOR EXPERTS The formal training options related to food processing sectors under study are generally advanced level programs being offered at Universities in Punjab, leading to Bachelors and Masters Degrees in Food Science and Food Technology. Some universities are offering Ph.D. in Food Science and Technology as well.

Short Term Courses, though minimal are available in some universities. While there is a strong presence of Technical and Vocational Training Centers with more than 700 institutes (both from public and private sector) across Punjab, training options in the desired skills are negligible.

Selection of trades, curricula development and selection, recruitment and training of trainers are strictly made as per policies and procedures outlined by the Higher Education Commission and are followed by both the Government and Private institutes. It is for this reason uniformity in course content is observed. The curriculum is designed in a way to cover major aspects of food processing industry along with mandatory subjects followed by an internship at the end of the program.

Low level of ‘industry and Training Service Providers (TSPs) relationship’ is identified at all levels by both, TSPs and Sector Experts. Both feel a dire need for a close and strong relationship and active participation of industry representatives at all levels.

The summary presented below indicates a need for skill building at all levels in production units across all segments under study. The combined results of survey with Establishments and IDIs with Sector Expert and secondary research reveal that majority of the skill requirements fall under two major groups -Skill Level 1 and 2. Other skills in demand are related to; technical expertise in food processing and preservation, quality assurance, research and development, maintenance engineering, and fall under Skill Level 3 1F

2.

2Skill Levels have been classified as per ISCO standard

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TABLE 3: SKILLS REQUIRED AT ALL LEVELS-NON SECTOR SPECIFIC 2F

3

Skills Required –Non sector Specific

Skill level 1

Skill level 2 Skill level 3 Skill level 4

Ele

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ry

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up

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on

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l a

nd

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ort

w

ork

ers

S

erv

ice

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sale

s w

ork

ers

Cra

ft a

nd

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ad

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ela

ted

w

ork

ers

Ma

na

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rs

Te

chn

ica

l a

nd

A

sso

cia

tes

Pro

fess

ion

als

Pro

fess

ion

als

Se

nio

r M

an

ag

ers

Research and Development Skill

Food Technologist/Food Chemistry/Bio technologist/Food Processor/ Food Preservation Expert-

Food Quality Assurance /Quality Control

New Product Development Skill/Copying Recipes

Product Knowledge-

Sale And Marketing Skills -

Procurement Skills

People Management Skills/Training Skills/Coaching Skills -

Supervisory Skills -

Technical Skills-

Plant Operating Skills-

Machine Operating Skills-.

Tools And Equipment

Plant/Machinery/Tools and Equipment Maintenance, Repair and Sanitization

Processing Skills

Batch Making/Control of Batch Operations

Packaging Skills-

Storage, supply and stock control of goods and materials in food operations

Good Manufacturing Practice

Good Hygiene Practice

Health and Safety at Work Place

Transportation

3Non Sector Specific skills are the common skills that can be applied anywhere in the food processing industry

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In views of most of the sector experts, food scientist and researchers are required to possess Masters or Doctoral degrees and are considered ‘hard to fill’ vacancies. With limited education and training opportunities available in the food processing sector, very few of them opt for building careers in food processing. Therefore, the current industry demand is being met by either employees who are Diploma/certificate holders in food processing techniques, or employees who have gained expertise due to their long association in the field. Further expert machine /plant operators with sound knowledge of plant /machine operations (repair and maintenance, sanitization, ability to train juniors etc.) are also difficult to find for the same reasons in views of sector experts. Based on the results of interviews conducted, the major skills required within each sub sector under study are:

TABLE 4: SKILLS REQUIRED WITHIN EACH SUB-SECTOR Skills Required-Sector Specific- major job groups Major Job Group Value Added and frozen Food Processing- Knowledge of food preservation and processing techniques, cooking techniques Basic handling of fruits and vegetables- safe transportation, washing Visual examination -grading ,sorting Performing cutting operations peeling/cutting/slicing, dicing, chopping, coring, pulping Knives /cutting instruments handling techniques Preparing work station

Craft And Trade Related Workers Elementary Occupations Technicians And Associate Professionals

Edible oil and fat- Technical Knowledge of the product

Plant And Machine Operators And Assemblers

Technicians And Associate Professionals Beverage Production – bottling skills


Bakery and Confectionery- Knowledge of making bakery products, increasing shelf life of bakery products, cake decoration and garnishing techniques, knowledge of working with chocolates, creating new product, retail management skills , creation of new variety


Craft And Trade Related Workers Technicians And Associate Professionals Sales and services workers Elementary Occupations

Agri based Products Research and development Knowledge of production process, use of efficient technology, Value addition, product enrichment Visual examination, grading , sorting, cleaning , packing , storage

Technicians And Associate Professionals Plant And Machine Operators And Assemblers


Similarly the overall skills employers look for are summarized as follows3F

4;

4Based on the results of Quantitative Survey and in-depth interviews with Sector Experts and TSPs

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TABLE 5: OVERALL SKILLS – EMPLOYERS’ PERSPECTIVE

Skill Level Job Group Desired Skills

Skill Level 1 Elementary

Jobs

The employees at this level are desired to possess the physical capacity

to perform the assigned duties; able to carry out simple routine tasks

requiring manual dexterity; basic literacy and numeracy skills; ability

to understand and carry out simple verbal instructions. The employers

look for employees with basic knowledge of food hygiene and

understanding of basic quality control procedures.

Skill Level 2

Sales and

Service

Workers

Employers look for multi skilled staff capable of managing routine

functions at retail outlets- display, sales, customer handling, delivery of

bulk orders , customized packing etc.

Craft And

Trade

Related

Workers

Employers look for multi skilled “KARIGARS” with expertise in their

field .Other skills employers look for, are the ability to create new

products, efficient use of resources, ability to work independently and

within groups , train the assistant/helpers, cause minimum wastage.

The employers feel a strong need for craft related workers to be

conversant with Good Hygiene Practice and Good Manufacturing

practice, knowledge of how to work safely in the work environment

and ability to deal with unforeseen events such as fire/accidents.

Knowledge of First Aid in food processing industry is also desired.

Plant And

Machine

Operators

And

Assemblers

The employers feel a need that the machine/plant operators , besides

being physically fit to operate a machine should be able to read and

understand the written policies and guidelines to operate the

plant/machine, maintain simple records and prepare simple reports

where desired. They should be able to follow detailed written

instructions and procedures (operating manuals where there is one)

and have an understanding of product and process specifications

applicable to the work. Employers mostly look for technical skills to

operate the plant and perform routine and standard functions

associated with it (cleaning, minor repairing & maintenance). Ability to

train /pass on knowledge to sub-ordinates is also desired.

Skill Level 3

Technical

and

Associates

Professional

A strong need is felt to develop good quality food researchers, product

developers, quality assurance and quality control technicians, food

preservers, food processers etc.

Quality Management being a regulatory requirement in the food

processing industry and for obtaining certifications, the demand for

qualified Quality Assurance employees demand is increasing and will

see a rise in future too.

CONCLUSIONS

The food and beverage industry in Pakistan is experiencing a significant change in its workforce profile with ‘technological advancements in the production process,’ operatives being the key contributors. As the presence of technology is increasing, more and more workers are now operating machinery. Hence, a considerable shift in production workers from Skill Level 1 to Skill level 2 has been reported. Similarly a structural change in the retail operations has been creating more job opportunities for trained sales force.

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Our research also indicates a scarce supply of skilled/craft related workers across all sub sectors under study and an ample supply of raw labor. Less skilled laborers generally start as helpers for experienced workers and learn the skills on the job. Training options for the above mentioned job levels will not only provide better opportunities to the employees, by giving them an edge on raw/untrained staff, but will create awareness on how they can build up their career in Food Processing industry. On the other hand, it will become easier for employers who look for good, reliable and willing workers by hiring trained staff from reputable training institutes as per their requirements. It will save them the cost of recruitment and training.

RECOMMENDATIONS

The training needs of the above mentioned skills can mostly be acquired through technical and vocation training programs and can broadly be categorized into two major groups:

A. Where practical training needs can mostly be met at the training facilities- Vocational Training (short term courses)

B.Where high level of industry exposure is required at various stages of training– Technical Training (2-3 years programs)

For the skills that fall in group B, PSDF may encourage industry and TSPs’ collaboration by inviting joint proposals and devise a mechanism of assessment for them, ensuring an improved, stronger future and growth opportunities for trained workers, training institutions and the food processing industry as a whole.

DEMAND AND SUPPLY OF SKILLS/TRAININGS IN SECTOR It has been derived (through demand projection exercise conducted for the study) that the

cumulative demand for trainings in coming 5 years (2015-2020) is estimated to be 1,185,552.

The year wise breakup of skills/trainings demand in food processing sector is depicted

below;

TABLE 6: TRAININGS DEMAND IN NEXT 5 YEARS Fiscal Year (July-June)

Training Demand in numbers

2015 210,142 2016 222,920 2017 236,504 2018 250,944 2019 265,042

Cumulative Demand for Training

1,185,552

Further it can be seen from the table above and table 55 (chapter 7) that during 2019-2020 (5

years from now) the demand for trainings in the Food Processing Sector would be about 265,042.

Further, majority of the trainings during 2019-2020 would be required for Cooking and Frying

Techniques (37,580), followed by Plant and Machine Operating and repairing Skills (28,907), Food

Preservation techniques (22,875), Food Technologist/ Bio technologist (22,007) and Visual

Examination for Quality Product/ Sorting /Grading ( 19,607). Moreover, the demand and supply

scenario for Food Processing key skills’ trainings during 2019-2020 illustrates a wide gap in

demand (skills’ training demand) and supply (an estimated 6,233number of seats would be

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available in TSPs, related to Food Processing Sector, during 2019-2020) and this shows a

substantial potential for trainings and capacity building in this sector 4F

5.

Survey results (both quantitative and qualitative) also reveal that almost all the TSPs covered are offering bachelors and Masters/PHD programs (apart from the Star Farms). None of the TSPs (apart from the Star Farms) offering specific TVET related courses for Food Processing Sector related skills (core and sector specific) and therefore short term training programs must be introduced by the TSPs associated with the Food Processing Sector for narrowing the skills supply gap (depicted in figure 26, chapter 7).

5Chapter 7, Section 7.3 and Tables 55& 56

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1. Introduction

1.1 Importance of the Sector 1.1.1. The food and beverage processing industry is the 2nd largest industry of Pakistan after textiles, accounting for 27% of the value-added production, and 16% of employment in the manufacturing sector. According to sector specific data for July 2013-March 2014 the food and beverage industry has been one of the major contributors (12.37%) to the overall growth of large scale manufacturing in Pakistan. The items which have shown positive growth in the food and beverages industry include; Sugar 10.88%, Soft drinks 34.03%, Juices, Syrups & Squashes 13.69% and Vegetable Ghee 4.05%.5F

6 1.1.2. As projected in the ‘Pakistan Economic Survey 2013-2014; food processing exports are likely to grow manifold in the coming years, due in part to Pakistan being awarded the Generalized Scheme of Preferences Plus status (zero/low duty export) by the European Union. There are opportunities for Pakistan to push its exports and diversify markets for its products globally. Pakistani manufacturers can take advantage of access to relatively cheaper raw materials as well as more enhanced market access being sought through strengthening of trade relations.6F

7

1.1.3. The food sector in Pakistan, like many of its other industrial counterparts, remains highly labor intensive. In addition to the presence of large scale, mechanized processing units, there is a multitude of informal, labor intensive, unregistered and retail set ups within the local market.7F

8 Moreover, as was rightly noted in the ‘Terms of Reference (TOR)’ document, the industry operates in a globally competitive environment of increasing technological change and the proliferation of mechanized interventions. This has great implications for how the workforce in these sectors is structured in terms of education and training. This structuring needs to correspond to specific requirements in technology, design, product development, adoption of food and health safety standards for export purposes, quality testing, and other pre- and post-production processes. There is also parallel urgency to incorporate higher levels of manual operating skills. This necessitates a coordinated and well-considered strategy to enhance skills levels so that the food processing industry may fully benefit from emerging export and local-market penetration opportunities.

1.2 Background and Purpose of the Study

1.2.1 Punjab Skills Development Fund (PSDF) is a Section 42, not-for-profit Company set up under the Companies Ordinance 1984 by the Government of the Punjab in partnership with Department for International Development (DFID), United Kingdom. PSDF aims to provide quality skills and vocational training to the poor and economically vulnerable members of the population in the districts in which it operates. PSDF is a ‘funding body’ established with the purpose of ensuring effective and efficient usage of existing training and development resources both in the public and private sector. It is expected that through this mechanism, a training market will germinate and take hold in the province that is flexible enough to respond to the needs of the market with sufficient quality and efficiency, both for the industry and for the population.

6 Data retrieved from: Pakistan Economic Survey 2013-2014 – Chapter on ‘Manufacturing and Mining’ 7 Data retrieved from: Pakistan Economic Survey 2013-2014 – Chapter on ‘Growth and Investment’ 8 A report by: Professor Dr. Fakir Muhammad Anjum on “Value addition in Pakistan-Challenges and Opportunities”, National Institute

of Food Science and Technology, University of Agriculture Faisalabad, Pakistan

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1.2.2 The organization covers districts in Southern, Central and Northern Punjab, which include Bahawalpur, Bahawalnagar, Muzaffargarh, Lodhran, Lahore, Sargodha, Gujranwala, Faisalabad, Chiniot, Sheikhupura, Rahim Yar Khan, Vehari, Khanewal, and Narowal. These districts possess well-established industrial and agricultural clusters. PSDF intends to identify and address technical and vocational training needs in employment-intensive sectors, of which food processing is one. This timely intervention by the PSDF is a welcome step in the right direction as the provincial government has identified the food processing industry as a potential growth sector, and asserts that this sector calls for a coordinated and well-considered strategy to fully benefit from emerging export opportunities. 1.2.3 PSDF has commissioned Sidat Hyder Morshed Associates (Pvt.) Ltd. to conduct a food processing sector-specific study of emergent skill development needs that would explore broader skill needs and offer a comprehensive and holistic view of skills needed across specific food processing sub-sectors. This information will supplement PSDF’s overarching objectives concerning skills development in the Punjab. This study aims to also contribute to the organization’s goal of raising skills levels and competencies to provide impetus for enterprise and creating more and better jobs in the province. 1.2.4 The outcome of this Sector Skills Study will help in the assessment of skill needs in the food processing sector through the assessment of the current skill levels, development of plans for strengthening the skill potential of workers and identification of sector level skills delivery gaps. Moreover the outcome of this study will also help to develop a medium to long-term roadmap for human resource development in the food processing sector focusing on vocational and technical skills.

1.3. Scope of Work 1.3.1 The study, as per TOR document, covers establishments involved in the production of the following primary processed food and value added processed food:

TABLE 7: PRIMARY AND VALUE ADDED PROCESSED FOOD COVERING IN SCOPE OF STUDY

A. Processed Foods

Frozen food Frozen vegetables, snacks and meals

Value-added processed foods

Jams, jellies, pickles, sauces, squashes, concentrates, vinegar, seasonings and spices, dry vermicelli, noodles, macaroni and spaghetti, fruit juices, fruit juice drinks, canned fruits, snack foods (potato crisps, salted nuts, products from rice flakes and corn grits, lentil and gram snacks), cereals (corn flakes, rice cereal, porridge, etc.)

Value-added fruit and vegetable and intermediate products

All value-addition of fresh produce and intermediate products

Edible oils and fats Fruit and vegetable oils, ghee, margarine

Beverage production Aerated drinks, juices, bottled water

B. Bakery and confectionery

Cakes, breads, pastries, biscuits, ethnic confections, other dry bakery products, other confectionery (toffee, candies, bubble gum and chocolate).

C. Agri-food processing (primary processed foods)

All food produced agriculturally; this will include primary processing of fruit and vegetable fresh produce, flour, sugar, pulses, and grains.

1.3.2 Based on the ‘Terms of Reference’ document and feedback received from PSDF ‘Scope of Work’ for this study is reproduced and is attached as annexure 12;

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1.4. Objectives of the Study

1.4.1 The overall objectives of this study, as per discussions with client and provided in the TOR, are to:

a. Assess current skill levels (both vocational and professional) in the food processing sector of Punjab (not limited to the fourteen districts where PSDF operates);

b. Inform PSDF’s plan to strengthen the skill potential of workers in the food processing sector; this will include identification of trades in demand, training courses required and training delivery options;

c. Identify sector-level skills delivery gaps and the contribution required of other industry players,

d. Develop medium- to long-term targets for human resource development (HRD) for the food processing sector focusing on vocational and technical skills, and;

e. Identify key actions for technical and vocational education and training (TVET) policy and practice that will strengthen the sector and indicate complimentary policy actions to deal with HRD issues.

1.5. Structure of the Report

1.5.1 This report is structured as follows:

TABLE 8: SUMMARY OF CHAPTERS

CHAPTER PURPOSE

Chapter 1: Introduction This chapter explains the background and importance of food

processing sector along with objectives and scope of work.

Chapter 2: Methodology This chapter describes the methodology (including sampling

methodology) adopted by us to complete various project tasks.

Chapter 3: Profiling the

Food Processing Sector –

Literature Review

This chapter provides an overview of global food processing industry

trends, and size, production, consumption, structure and nature of

several sub-sectors of food processing industry in Pakistan. This

chapter also highlights key challenges facing the sector, sector growth,

trade and major trading partners, employment and skills demand in

the sector, policy initiatives and training supply.

Chapter 4: Findings of the

Formal and Informal

Establishments ’Survey

This chapter provides the findings obtained from the survey of formal

and informal food processing establishments.

Chapter 5: Detailed

Findings –Training Service

Providers

This chapter provides the findings obtained from the qualitative

survey of TSPs providing training to the food processing sector. It

provides key findings on courses, affiliations, accreditations, selection

and recruitment of training staff, post-training facilities offered to

graduates, plans for expansion and international certifications.

Chapter 6:Detailed

Findings –Sector Experts

This chapter provides the views and opinions of industry

representatives and sector experts interviewed for this survey. It

provides their views on trends in the global food processing industry,

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CHAPTER PURPOSE

Pakistan’s food processing industry, food processing’s; sector specific,

non-sector specific and common skills (among several sub-sectors)

required, assessments of skills requirement and skills gaps, on-the -

job and off –the-job training opportunities, off –the-job training, TVET

and the food processing sector

Chapter 7: Summary of

Findings

This section of the report provides a summary of findings derived

from In-depth interviews and quantitative survey of respondents

companies.

Recommendations on closing skills gaps, enhancing supply of skills,

policy interventions required, opportunities for private sector

participation, etc. are also presented in this chapter

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2. Methodology

2.1. Detailed Methodology 2.1.1 This section of the report provides a detailed look at the methodology employed for the conduct of the survey. The methodology itself was developed in response to the Terms of Reference (TOR) and scope of work provided by the client (PSDF) and was further crystallized during subsequent discussions with our points of contact within PSDF. 2.1.2 We have organized our methodology into the following components as illustrated below:

FIGURE 1: COMPONENTS OF METHODOLOGY

2.2. Initial Meeting/Stakeholder Meeting 2.2.1 Upon commencement, the consultants held an introductory meeting with client representatives. During this meeting the consultants discussed and finalized key study details such as objectives, activities, deliverables, timelines, responsibilities, roles, etc. Additionally, the sampling strategy and geographic distribution of sample including food processing sector establishments, business experts; TSPs, etc. were also discussed. During this meeting a point of contact was also identified from the client’s end with whom the consultants coordinated matters pertaining to the conduct of the survey.

Project Kick off

• Stake Holder Meeting / Initial meeting • Review of Secondary Data

Sample Design and Selection

• Sampling Plan / Scheme (food processing establishments, TSPs and Experts) • Finalization of Samples in consultation with Client

Field force Selection and

Training

• Selection of Field force from our in-house pool of consultants • Develop training course for training enumerators on survey instruments

Design and Survey

Instruments

• Design of Questionnaire Formal Informal for food Processing establishments • Design of in-depth interview guide for sector experts and TSPs • Pretest/Pilot test of survey • Conduct training of enumerators

Conduct of Survey

• Securing survey participation • Conduct of Questionnaire Survey of 185 food processing establishments • Conduct of IDIs of 12 TSPs and 36 Sector Experts

Data Entry and

Analysis

• Obtain Questionnaires and Implementation of QC mechanism • Data Entry by in-house team at SHMA Head Office • Data analysis and Report Writing

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2.2.2 During the initial meeting the consultants also requested for any relevant documents, research materials etc. that might be available with PSDF and could be useful to the consultants. PSDF highlighted a few online materials relevant to the study which provided an initial understanding of the requirements for survey questionnaire design, sampling methodology and geographic distribution of sample. 2.2.3 Soon after the kick-off meeting, the project team was mobilized. Within one week of aforementioned meeting, the consultants submitted a final work plan for execution of the project.

2.3. Desk Review of Literature, Data, Information Available 2.3.1 As part of the survey, a desk review of available literature, data and information was conducted. This included regional and national reports and other background information relating to context of the survey:

2.3.2 The secondary research covered:

Industry structure and sector mapping of the processed foods sector in terms of size and products,

Number of formal and informal establishments and their distribution in Punjab,

Current industry status, current or upcoming changes; particularly changes like

technology, organizational changes, price competition etc.

Documentation pertaining to existing and future skill gaps/shortages in existing labors and

new recruitments,

Other data available from government, semi government and private food processing

associations

2.3.3 The sources of information reviewed for the purpose of secondary research (of this study) are annexed (Annexure 13) at the end of this report; 2.3.4 Secondary research established the context of subsequent data gathering activities and further crystallization of project goals. This research also aided in identification of areas of exploration that were covered in subsequent meetings with relevant stakeholders (including food processing sector establishments, sector experts and TSPs) and in the identification of key stakeholders tapped for the conduct of interviews.

2.4. Sample Design and Selection

Quantitative Survey (Formal/Informal Establishments) 2.4.1 We carried out extensive desk reviews of data available from different government, semi-government departments and private food processing sector associations. Based on these reviews and our discussions with PSDF during the course of study, our sampling was organized into the following three criteria/stages:

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i. Sub sector/Value Chain wise distribution

ii. Category and type of the entity (as defined by SMEDA and several associations in the

food processing sector)

iii. District wise distribution - Southern, Central and Northern Punjab

Sub Sector/Value Chain Wise Distribution

2.4.2 As per the TOR document and based on our desk research, we have broadly classified the food processing industry (with respect to raw material used and industry sub-sectors) as follows:

i. Value added and frozen food processing units(includes; ‘vertically integrated units’ in terms of operations and raw material used, ‘Frozen Foods’ including frozen vegetables, snacks and meals, ‘Value added Processed Food’ including jams, jellies, pickles, sauces, concentrates, fruit juice drinks, canned fruits, lentils, cereals, snack foods etc. and ‘value added fruit and vegetable and intermediate products’ including all value addition of fresh produce and intermediate products)

ii. Edible Oils and Fats Manufacturing/Processing units (includes but not limited to

‘vertically integrated units’ in terms of operations and raw material used, fruits and vegetable oils, ghee, margarine etc.),

iii. Beverage production units (includes but not limited to ‘vertically integrated units’ in

terms of operations/sub sectors and raw material used, aerated drinks, juices, bottled water etc.)

iv. Bakery and confectionery manufacturing units(includes but not limited to ‘vertically

integrated units’ in terms of operations and raw material used, cakes, breads, pastries, rusks, doughnuts, pies, pancakes, muffins, toffees, candies, bubble gum, chocolates, specialty mixes and concentrates, breading, pancakes and batter mixes etc.)

2.4.3 The above classifications were supplemented with a further categorization of food processing companies8F

9, as follows;

Categories of the Food Processing Companies

i. Informal/Cottage establishments(including micro and small scale units) – up to 30 employees and producing not more than 100 units (Kilograms/Liters) a day

ii. Formal establishments(Organized sector means capital-intensive factories or mechanized manufacturing process) – More than 30 employees (including medium size establishments as well) and can produce more than 100units (Kilograms/Liters)a day

Geographic Distribution

2.4.4 Based on the classifications above, a proportionately distributed sample was drawn from 15 selected districts (as listed below).Some 4 districts from North and Central Punjab, and 7 districts from Southern Punjab were included in the survey. District participation in the

9According to estimates provided by SMEDA, PFA, Chamber of commerce, Punjab Development Statistics 2013 and Bureau of Statistics

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sample was done based upon the presence of units relevant to the survey within the districts. Another factor for consideration in this regard was to ensure that the units/districts tapped for inclusion in the sample provided coverage to the various value chains identified for the purposes of the survey. This approach ensured comprehensive coverage of the formal and informal sectors as well as ensured that available and active value chains were given representative coverage in the sample.

TABLE 9: GEOGRAPHIC DISTRIBUTION

North Central South

Attock Faisalabad Multan

Narowal Lahore/Sheikhupura Sahiwal

Sialkot Gujranwala Muzaffargarh

Rawalpindi/Islamabad Sargodha Bahawalpur

Bhawalnagar

Vehari

Lodhran

Formal Establishments 2.4.5 Based on the classifications above, a proportionately distributed primary sample of formal establishments was drawn from 15 selected districts. We then made an additional pool of formal establishments using the similar sample drawing approach that served as a backup sample in the eventuality of drop outs/refusals. 2.4.6 Table 10 below shows the total sample size; 107 establishments for formal sector, with regards to all 4 sub-sectors proportionately distributed amongst regions. The list of formal establishments along with their contact details, surveyed for the purpose of this study is provided at the end of this document as annexure 1.

TABLE 10: REGION WISE SUB-SECTORS’ BREAKUP (FORMAL SECTOR)

Region wise sub-sectors’ breakup (Formal Sector)

Central Punjab North Punjab South Punjab

Processed Food 33 Processed Food 11 Processed Food 15

Edible Oils 8 Edible Oils 2 Edible Oils 2

Beverages Production 0 Beverages Production

1 Beverages Production

1

Bakery and Confectionery 24 Bakery and

Confectionery 3


7

Total 65 Total 17 Total 25

Informal Establishments

2.4.7 As per our TOR, the survey sample was to include approximately 78 respondents from the informal food processing sector. The region wise bifurcation of the sample for informal establishments based on the field work findings and secondary research (sample size of each region finalized with PSDF)is depicted in table 11:

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TABLE 11: REGION WISE BIFURCATION OF SAMPLE (INFORMAL ESTABLISHMENTS) Region wise sub-sectors’ breakup (Informal Sector)

Central Punjab North Punjab South Punjab

Value added Processed Food

23 Value added Processed

Food 8

Value added Processed Food

18

Edible Oils 0 Edible Oils 0 Edible Oils 0

Beverages Production 6 Beverages Production 1 Beverages Production

1


15 Bakery and

Confectionery 3


3

Total 44 Total 12 Total 22

2.4.8 Due to the informal undocumented nature of the sector, secondary sources (Industrial Directory 2011, and data from PFA and SMEDA) were used initially to draw up a sample, which was then verified and adjusted (those companies which were not operational or did not exist, were replaced by similar scope companies)where required during the course of fieldwork.

Interviews with business experts and training service providers (TSPs) 2.4.9 As per the scope of work, we conducted interviews of 12 Training Service Providers (TSPs); the list of these TSPs along with their contact details is annexed (Annexure 3) at the end of this report. During the selection of TSPs we kept the following key points in mind:

Capacity of training firm,

Level and diversity of skills provided,

Capacity to provide several trainings relevant to the value chain mentioned above,

Capacity to provide on-the-job training

Availability of standard equipment and are regulated with concerned authorities,

Certifications provided to students/graduates

2.4.10 Furthermore we also conducted interviews of 36 sector experts across Punjab. We organized the Sector Expert sample into the following groups of experts.

Table 12: Sector Experts

Type of Experts Sample Size

Economists/Government sector experts, 3

Top tier management of elite food processing industries (including edible oil, ethnic confectionery, frozen foods, bakery and confectionery, fresh fruits and vegetables etc. industries)

12

Curriculum developers and 11

Researchers, freelance experts, food quality/standards experts etc. 10

Total 36

2.4.11 The actual number of Quantitative Surveys and IDIs (TSPs and experts) conducted in each district/region is presented in the following table:

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Table 13: Total Quantitative Surveys and IDIs (TSPs and Experts)

Region Districts

Quantitative Surveys IDIs Formal Informal

TSPs Sector Exper

ts PF

EO

BV BC PF EO

BV

BC

Central

Faisalabad 7 1 0 2 10 0 0 8 4 19 Sargodha 6 0 0 6 1 0 0 1 1 - Gujranwala 1 0 0 3 4 0 0 2 - - Lahore/ Sheikhupura

19 7 0 13 8 0 6 4 2 13

Total 33 8 0 24 23 0 6

15

7 32

Region Total 65 44 7 32

Northern

Rawalpindi/ Islamabad

9 2 1 1 3 0 0 1 1 3

Narowal 1 0 0 0 2 0 0 0 - - Attock 0 0 0 1 2 0 0 1 - - Sialkot 1 0 0 1 1 0 1 1 - - Total 11 2 1 3 8 0 1 3 1 3

Region Total 17 12 1 3

Southern

Multan 8 0 0 4 14 0 1 1 2 - Sahiwal 4 1 0 0 1 0 0 0 1 - Bahawalpur 2 0 0 0 2 0 0 0 1 - Bhawalnagar 1 0 1 2 1 0 0 0 - - Vehari 0 2 0 1 0 0 0 2 - - Muzaffargarh 0 0 0 0 0 0 0 0 - - Lodhran 0 0 0 0 0 0 0 0 - - Total 15 2 1 7 18 0 1 3 4 -

Region Total 25 22 4 - Karachi/

Hyderabad Karachi - - - 1

Total 107 78 12 36 PF=Processed/Frozen Food EO=Edible Oils BV= Beverages BC=Bakery & Confectionery

2.5. Survey Instruments

2.5.1 The survey instruments/data gathering methods employed for this engagement are as follows:

Quantitative Survey Questionnaire

2.5.2 As per our various discussions with the client and based on the contents of the TOR document, the survey instrument was administered at the enterprise level to effectively capture information regarding present and future training needs. As per our consultations with the client, and with their approval, one survey instrument was used for the survey across the range of food processing units to be covered under this survey. 2.5.3 The major thrust of the quantitative data gathering effort through this questionnaire was to effectively cover/capture key factors such as;

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Profile of the firm Workforce characteristics Type and level of skills needed in sector Skill gaps in existing workforce Current and future demand of skills Existing and future skills shortages in new recruitments Relationship with TSPs, etc.

2.5.4 The instrument was administered in the form of a structured interview to aid the respondent in filling it out. A copy is provided in the annexure (Annexure 8).

TSPs-Interview Guide 2.5.5 TSP interview guide was administered to identified TSPs / OJTs. We used semi structured, open ended questions in the guide with the goal of gathering as much information as possible from the respondents during the conduct of interviews.

2.5.6 The attached TSP interview guide, which has also been annexed (Annexure 9) to this document, covers the following key factors;

Profile of the Institute Programs/courses offered by the Institute Selection criteria for food processing trades for which trainings/courses are offered Development and review of curriculum/course content Training providers’ capacity to develop and adapt curricula, Ability to offer new vocational/technical courses, Linkages with employers etc.

In-Depth Interview Guide- Sector Experts

2.5.7 The IDI guide served as a guiding document for meetings, discussions and conversation with various sector experts and informed sources. The purpose was to ensure that key areas related to the study received sufficient coverage and benefit from the expertise of the interviewees. The in-depth interview guide was intended to facilitate discussions with sector experts of food processing industry that included: 2.5.8 Top management/experts from reputed food processing establishments, food processing consultants and researchers, economists and government sector, curricula developers and academia etc.

2.5.9 The annexed (Annexure 10) IDI guide covers the following:

Global food processing industry- opportunities, challenges etc. Pakistan’s food processing Industry – challenges, local demand, etc. Skills requirement Assessments of skills levels and skill gaps On-the-Job and Off-the-Job training Role of government Awareness about PSDF etc.

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2.6. Pre-Test/ Pilot Test of Survey 2.6.1 We performed 5 pre-tests of the survey instruments prior to the main survey. We then incorporated changes, based upon feedback received during the pre-testing exercise. 2.6.2 Pilot tests ensured the accuracy of data captured, length of survey in terms of time duration and relevance etc. Steps conducted to pre-test the survey instrument included:

Expert review -The survey design specialist and the sector specialist from our own team

reviewed the survey instruments to assess its appropriateness to the objectives of the

survey and to ensure its alignment with the nature of the data to be gathered.

Industry Experts’ Interviews -We conducted number of rounds of in-depth interviews with 3-

4 industry experts using the designed survey instrument. At the end of each interview, we

diagnosed emergent issues with the instrument, resolved these and conducted final round of interviews prior to instrument finalization.

2.7. Survey Administration Data Collection Methods 2.7.1 A one day training course was developed for the purposes of training enumerators on the survey instruments. The course was divided into a half day review and familiarization component and a half day practical exercise. Each enumerator was also required to perform mock interviews as part of role playing exercise. 2.7.2 Following the training, field work commenced. To set the desired quality standard the Fieldwork Supervisors also accompanied the enumerators on initial field visits.

Survey Management and Questionnaire Administration 2.7.3 For the purpose of the survey we divided data collection into three teams; South Zone, North Zone and Central Zone, as per Table 9 of this chapter. Each team comprised two enumerators, one of which was relatively senior resource who had at least more than 3 years’ experience of administering large scale surveys, while the other had at least 1-2 years’ experience of conducting field work of large scale surveys. These teams were headed by a Fieldwork Supervisor/Manager with extensive experience of managing data gathering teams and conducting several large scale surveys of similar nature. The Field Manager and enumerators had back office support for the mailing of introductory letters and setting up of interviews.

2.7.4 Field work began on 24th November 2014, after training had been provided to the team based in a particular zone/city (as depicted above). Field coordination and setting of targets were being managed by Fieldwork Supervisor. It was the responsibility of the Fieldwork supervisor to ensure that field work proceeded as scheduled.

2.7.5 The field teams administered the questionnaires as per their scheduled appointments. On average each enumerator was able to conduct 3-4 interviews a day as permitted by the schedule.

2.7.6 Quality checks on a random selection of 5-6% of the total sample were conducted, in terms of completeness and internal consistency. Furthermore, the findings of qualitative and quantitative data analysis were compiled in the form of weekly reports and submitted to PSDF each week for review and approval.

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2.7.7 Data entry began approximately half way through the data collection exercise so that data entry could be completed shortly after the completion of the data collection activity. The data thus gathered by the consultants were then compiled and analyzed after which report writing commenced.

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3. Profiling the Food Processing Sector- Literature Review

3.1 Introduction

Industry Snapshot

3.1.1 This chapter provides an overview of the food processing sector in Pakistan specifically

in Punjab region. The aim of this chapter is to provide a context wherein demand and supply

projections of Technical and Vocational Education Training (TVET) for 5 years can be

established. Furthermore, it also discusses the demand drivers for skills in the food processing

sector. This chapter will briefly illustrate the current status of the industry and its growth and

relevance to Pakistan including; employment potential, production processes, export

performance and changes that are beginning to, or are expected to affect the industry,

particularly technology.

3.2 Overview of Food Processing Industry

Global Processed Food trade and Pakistan share 3.3.1 Global trade in processed food products during 2013 was US$ 541.69 billion. Pakistan’s

share of exports in this sector was only US$ 1.33 billion (less than 0.25%) as mentioned in

table14.

3.3.2 World trade statistics for processed foods are accumulated in 8 sub-sectors. Exports

value of Pakistan in each of these sub-sectors during 2009-2013, and comparison of Pakistan’s

export with world total during2009-2013 are presented in table below. The overall results

(total Pakistan’s processed food exports during 2009-2013) as depicted in table below, show an

increasing trend of Pakistan’s exports during these years. However, the export figures during

2009-2013 show negligible contribution of Pakistan towards World’s total exports.

32 SIDAT HYDER MORSHED ASSOCIATES (PVT) LTD MANAGEMENT CONSULTANTS


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Table 14: Sorted by export value in 2013 9F

10

(figures in US$’000)

HS Code

Sector Exported value in 2009

World Total 2009

Pakistan Share %

2009

Exported value in

2010

World Total 2010

Pakistan Share %

2010

Exported value in

2011

World Total 2011

Pakistan Share %

2011

Exported value in

2012

World Total 2012

Pakistan Share %

2012

Exported value in

2013

% of Total 2013

World Total 2013

Pakistan Share %

2013

17 Sugars and

sugar confectionery

111,893 34,308,229 0.33% 87,956 44,735,324 0.20% 66,650 53,843,447 0.12% 253,535 52,231,706 0.49% 633,568 47.47% 50,953,628 1.24%

22 Beverages, spirits and

vinegar 121,561 79,480,197 0.15% 187,455 86,858,059 0.22% 272,750 104,071,442 0.26% 172,771 106,331,168 0.16% 364,159 27.29% 110,830,926 0.33%

15

Animal, vegetable fats

& oils, cleavage products

97,373 66,032,003 0.15% 85,926 81,132,041 0.11% 192,509 110,733,390 0.17% 220,910 106,386,990 0.21% 155,066 11.62% 98,622,935 0.16%

19

Cereal, flour, starch, milk

preparations and products

21,664 44,637,458 0.05% 24,273 47,911,285 0.05% 49,793 55,881,250 0.09% 47,810 57,931,324 0.08% 74,504 5.58% 64,107,673 0.12%

20

Vegetable, fruit, nut, etc.

food preparations

24,430 44,679,182 0.05% 30,974 47,581,580 0.07% 56,028 56,622,295 0.10% 64,867 56,786,984 0.11% 69,313 5.19% 60,516,455 0.11%

21 Miscellaneous

edible preparations

13,419 43,562,433 0.03% 14,207 47,405,502 0.03% 19,129 55,318,239 0.03% 25,611 56,385,811 0.05% 25,098 1.88% 62,301,564 0.04%

16

Meat, fish and seafood food preparations

nes

27,795 34,748,282 0.08% 30,146 37,262,066 0.08% 55,904 44,597,487 0.13% 33,435 47,028,939 0.07% 12,624 0.95% 49,087,544 0.03%

18 Cocoa and

cocoa preparations

138 34,119,225 0.00% 37 38,104,162 0.00% 96 43,391,599 0.00% 310 43,701,175 0.00% 209 0.02% 45,270,140 0.00%

Total processed

food 418,273 381,567,009

460,974 430,990,019

712,859 524,459,149

819,249 526,784,097

1,334,541 100.00% 541,690,865

10 Data retrieved fromwww.trademap.org

http://www.trademap.org/



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3.2.1 Global food retail sales are about $4 trillion annual10F

11.Over 60% of total retail processed

food sales in the world are accounted by the U.S, EU and Japan together. Despite the large size of

the industry, only 6% of the processed food is traded over the world as compared to bulk

agricultural commodities where 16% of produce is traded.11F

12

3.2.2 The sector has shown the highest growth in developed economies, especially across

Western Europe, North America, Japan and Australia. 12F

13 Japan is the largest food processing

market in the Asian region, though China and India are catching up fast and are likely to grow

more rapidly.

3.2.3 One of the most technically advanced food-processing industries globally is the

Australian Food Processing Industry. Countries in the Sub-Sahara African region, Latin America

and parts of Asia continue to be on the lower-end of technology competence in food items.

Europe, North America, and Japan are on the higher-end of technology, with a sharper shift

towards convenience and diet foods.13F

14

3.3 Clusters of Processed Food Sector in Pakistan

3.3.1 Most of the food industry in Pakistan is concentrated in the Punjab (60%) followed by Sindh (30%). KPK has a 6% share while Baluchistan and Federal capital have 2% each, 14F

15

FIGURE 2: CLUSTERS OF PAKISTAN FOOD INDUSTRIES BY PROVINCE

TABLE 15: CLUSTERS OF INDUSTRIES – FOOD PRODUCTS AND BEVERAGES 15F

16

Regions Units %

Punjab 1,928 60%

Sindh 556 30%

KPK 118 6%

Baluchistan 36 2%

Islamabad 29 2%

Total 2,667 100%

11 United States Department of Agriculture, Economic Research Service (2012) 12 Report on Indian processed food industry (2008) 13 Ibid 12 14 Ibid 12 15Census of Manufacturing Industries Pakistan 16 Ibid 16

60%

30%

6%

2%

2%

Punjab

Sindh

KPK

Balochistan

Islamabad



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3.3.2 Together the sector includes over 1800 processing units. Within the Punjab, majority of the food processing units (~72%) are located in five divisions of Lahore, Multan, DG Khan, Faisalabad and Gujranwala. Bahawalpur, Sahiwal, Rawalpindi and Sargodha divisions have relatively fewer numbers of units.

FIGURE 3: CLUSTERS OF FOOD PROCESSING UNITS IN THE PUNJAB16 F

17

3.3.3 Since the food processing sector is very large and includes a diverse range of industries, we will first present the overall status of three major industry groups, i.e.

a. frozen food, b. value addition in major food crops, and c. Fruits, vegetables and intermediate products. 17F

18

3.3.4 After discussion of the major industry groups we will present a brief view of the sub-sectors within each of the three major industry groups.

A. Frozen Foods 3.3.5 The demand for processed and frozen food is expected to grow. This growth can mainly

be attributed to changing urban lifestyles in the country. Another reason for growth is a growing

population. Market diversification of traditional brands into this sector, like Dawn Foods, for

example, have provided consumers with options that hitherto either did not exist or belonged to

the informal sector and more importantly, not in frozen form.

3.3.6 A nascent consumer and retail culture is also evolving in urban markets. Malls with

supermarkets and hypermarkets like Metro and Hyperstar have also played a key role in

attracting customers towards processed and frozen food items in metropolises like Karachi,

Lahore and Islamabad. Seasons Foods, a relatively new entrant which started operations in

2006, is also striving to gain a strong footing in the domestic market by offering frozen

vegetable products like potato cutlets, vegetable samosas and vegetable spring rolls, to name a

17Ibid 16 18Arfin, R. Shehla (2011), “Frozen Food Products Marketing And Distribution Challenges in a Developing Country”

16%

15%

14%

14%

12%

10%

9%

7% 3%

Lahore Multan DG Khan

Faisalabad Gujranwala Bahawalpur

Sahiwal Rawalpindi Sargodha



Final Report

few. Dawn Foods also made their presence felt in the frozen food market with their parathas,

frozen ready to eat flatbread. Cash and carry stores in bigger cities now offer more options to

customers in the frozen food market as consumer demand for such products increases.18F

19

B. Value Addition in Major Food Crops 3.3.7 Pakistan is a major producer of industrial crops such as wheat and rice. The value added

products from these crops are dry vermicelli cereal, noodles, macaroni, poppadum’s, pasta and

spaghetti etc. The production of wheat was 25,286 thousand tons in 2013-14. Its share in value

added products however remained low at 14.4% owing to the staple nature of wheat in the

country. Rice is the second-most important cereal crop and its production was 6,798 thousand

tones. 19F

20

3.3.8 Growth and crops are abundant in Pakistan but suffer from post-harvest losses

occurring after the harvest during transport, processing and packaging stages. The Harvest and

post- harvest losses of wheat and other grains range between 15 - 18%.20F

21

3.3.9 Good processing techniques, packaging, transportation and storage can play an

important role in reducing spoilage and extending shelf life of value added items. Extrusion

technology in recent times has become popular in many developed countries and is now

emerging in Pakistan. It is believed that this technology has numerous merits including energy

saving, higher production, variety of products, a wide range of ingredient usage and increased

nutritive value. Currently, extrusion technology in Pakistan is being used in processing food

products like breakfast cereals, direct expanded snacks, snack pellets, pasta, etc. 21F

22

3.3.10 The industry needs more technically trained people in secondary processing in order to

mitigate harvest &post-harvest losses. At present, only few universities/institutes are offering

specialized courses on Post-Harvest Technology& Management and Extrusion technology.

C. Fruits, Vegetables and Intermediate Value Added Products 3.3.11 There are more than 25 processing plants for fruits, vegetables, and intermediate value-

added products in the country. Most of the processing plants are citrus based, owing to its

relative abundance. The second largest processing capacity in the industry is for mango. Major

fruit processing plants are located in Karachi, Lahore and Peshawar. They produce jams, jellies,

squashes, pickles and canned fruits. The production of fruit-preserve is currently estimated at

15,000 tons out of which; jams, jellies and marmalades are 2,000 tons, pickles and chutneys

10.000 tons and syrups and 18 million bottles of squashes. 22F

23

Major Players in Sector

3.3.12 Several global food giants and leading industrial enterprises are already making their presence felt in this sector. Some of the key players are Nestle Pakistan, Mitchell’s Fruit Farms Ltd., Unilever Pakistan, and Engro Foods etc. An analysis of financial statements of these food

19 Ibid 19 20 Pakistan Bureau of Statistics, 2014 21 Economic Survey of Pakistan 2014 22Pakistan Society of Food Scientists and Technologists

23Horticultural Research Institute, AARI, Faisalabad.



Final Report

companies shows an increase in their sales and net profit e.g. the sales of Nestle increased from Rs. 34.18 billion in 2008 to Rs. 86.22 billion in 2013, an increase of 152%. Similarly net sales of Mitchell’s Fruit Farms also increased by 100.6% during CY 2008-13.23F

24

Current Situation and Future Needs

3.3.13 There are more than 90 citrus grading/packing plants in the country, which are all concentrated in Bhalwal/Sargodha, whereas in Toba Tek Singh the second largest citrus-producing district, there is only one citrus grading/packing plant. This situation is worse for other fruit crops. Due to short shelf life of raw materials, half of the fruit produced cannot be packaged, transported or stored and is eventually wasted due to non-availability of adequate storage infrastructure or processing facilities close to fields. There is a prevalent need for installing more fruit and vegetable value added processing industries in the country. The current capacity is under-utilized and can be enhanced 2-3 times.24F

25 3.3.14 There is a high demand of trained human resource in the industry across all levels. The shortage is more severe at the floor level, which holds significant proportion of the workforce employed in this sector. Further sector experts have highlighted (in-depth interviews of sector experts) that several in-house production facilities are being constructed that will create opportunities for skilled labor force in primary processing especially in harvesting, cleaning & storage of the product. The industry experts also highlighted future skills demand for secondary processing skills, especially canning skills. 25F

26

3.4 Edible Oil and Fats 3.4.1 The ‘edible oil and fats’ sector covers vegetable oil, ghee and margarine. The domestic source of edible oil is cottonseed, sunflower, canola and rapeseed/mustard. Total availability of edible oil from all sources is provisionally estimated at 2.35 million tons during 2012-13 (July-March). 26F

27 The table below provides the area and local production of oilseed crops in Pakistan:

TABLE 16: AREA AND PRODUCTION OF MAJOR OILSEED CROPS

Crops 2011-2012 2012-2013 (P)

Area Production Area Production

Crops (000

Acres)

Seed (000

Tonnes)

Oil (000

Tonnes)

(000

Acres)

Seed (000

Tonnes)

Oil (000

Tonnes)

Cottonseed 6,958 3,212 385 7,143 3,393 407

Rapeseed/Mus

tard 575 203 61 452 158 51

Sunflower 877 473 179 700 378 144

Canola 27 30 11 30 18 10

Total 8,437 3,918 636 8,325 3,947 612

Source: Pakistan Oilseed Development Board

P: Provisional (July – March)

3.4.2 Edible oil is mainly supplied through three main sources; oilseeds produced domestically in Pakistan accounts to 23%, Pakistan imports of refined edible oil accounts to 68% and local oil production from imported oilseeds accounts to 9%.27F

28

24Financial Statements of Nestle Pakistan, Mitchell’s Fruit Farm, 2013 25 USAID Agribusiness Quarterly Report, Issue: July – Sep 2012 26Discussions with experts from SMEDA and TDAP 27 Pakistan Economic Survey 2012 -2013 28 Economic Survey of Pakistan 2014



Final Report

3.4.3 Total oilseed crush in 2014/15 is anticipated at 5.7 Million Metric Tonnes (MMT), 5.5 % higher than in 2013/14. Almost 85 to 95 % of total oilseed production is crushed for oil with the balance used for food, feed, and seed purposes. Although the cotton crop is grown for its lint, cottonseed contributes 50 to 60 % to local edible oil production28F

29. Current Situation of Sector 3.4.4 Vegetable ghee & cooking oil industry is one of the largest manufacturing sectors in the country. The industry has total 160 small and medium sized vegetable oil and ghee units. Out of the total units, about 87 firms are registered; also there are a large number of unregistered firms who are filling the gap between demand and supply. Out of 44 registered units in Punjab, 37 are operational.29F

30

TABLE 17: TOTAL NOS. OF VEGETABLE OIL AND GHEE UNITS

Pakistan Registered units Unregistered units

87 73

3.4.5 Pakistan is also the largest importer of palm oil after China & the European Union. Pakistan’s edible oil industry has 10 refining units, which imports crude palm oil. 30F

31The refining units have fully automatic plants installed for refining. Technical or specialized personnel are not required to operate the plant. Even for packaging, skilled workers are not required as it is done automatically through specialized machinery. Only unskilled labor is required for loading purposes.31F

32

3.5 Beverages 3.5.1 Major products of the beverage processing industry include dehydrated products, fruit products including fruit juices/drinks, canned fruits and carbonated beverages, etc.32F

33 For our purposes, the beverage industry of Pakistan has been organized into two broad categories, (1) production of Juices, Squashes and Syrups and (2) Aerated beverages.

Production of Juices, Squashes and Syrups

3.5.2 Pakistan has witnessed impressive growth of 16.34% in juices, syrups & squashes. The key players in this sector are Nestlé Pakistan Ltd, Mitchells Fruits and Benz, Popular Group of Industries, Pakistan Fruit Juice Company (Pvt.) Limited, Naurus (Pvt.) Ltd., Paradise fruit juice Ltd., Maaza and Shezan International. They are involved mainly in production of fruit juices, syrups, pulps and squashes in the country. Their production units in Punjab are mostly located in Lahore, Bahawalpur and Sargodha. Given the growth and potential in the fruit juice market, there is great opportunity for expansion and employment generation. Pakistan can grow more in this sector but post harvesting losses mainly because of; unavailability of modern processing techniques in the sector and the lack of modern fruit processing technology skills, are the biggest barriers hampering this growth. 33F

34

29 Oil seeds and Product Annuals 2014, Global Agricultural Information Network Report 30 Pakistan Vanaspati Manufacturer’s Association 31 Ibid 30 32 Ibid 24 33 Economic Survey of Pakistan, 2014 34 Dr. Memon, A. N. (2012), “Fruits and Vegetable Juices Global Market”



Final Report

Aerated Beverages 3.5.3 Pakistan has witnessed growth of 3.98 % in Beverages from 2009 to 2014 34F

35. The table below shows the total production of beverages in Pakistan.

TABLE 18: PRODUCTION OF

BEVERAGES

Year (000) Liters

2009 – 10 1,554

2010 – 11 1,490

2011 – 12 1,812

2012 – 13 2,081

2012 - 13 1,308

2013 -14 P 1,618

P : Provisional

Economic Survey of Pakistan 2013 – 14

3.6 Bakery and Confectionery

3.6.1 According to Pakistan Biscuit & Confectionery Manufacturers Association, Pakistan Bakery and Confectionery Industry has grown at an average annual rate of 6.5% to 7.5% during 2002-2010. The formal market is dominated by two leading players, Continental Biscuits Limited and English Biscuits Manufacturers. According to industry sources, together, the two companies make up almost four-fifths of the sales of the organized sector in this field. However, the majority of the overall demand for biscuits is still fulfilled by the informal sector; smaller players and bakeries whose sales figures remain largely unmeasured. After EBM and Continental Biscuit the market is occupied by Hilal confectionery, Candy land and Ismail Industries etc. which produces candies, chew toffee, wafers, powdered drinks, chewing gum, pan masala etc. In addition, Mitchell’s Fruits Farms Ltd. has 10 products in sugar confectionery. 35F

36 3.6.2 The revenues of English Biscuits Manufacturers, which claims over 40% of the branded biscuits market, have clocked in at a compound annual growth rate (CAGR) of 26% from fiscal year FY2009 to FY2012.36F

37 Continental Biscuits Limited, another important player, has a CAGR of 23.7% during the four-year period. Talking about branded biscuits, the Economists note that an improved distribution network, quality control and the rising culture of ‘tiki packs’ are some of the main factors contributing to this growth 37F

38.

3.6.3 Overall the industry faces shortage of skilled labor in formal sector for machine operators. Currently, the machine operators have inadequate ability to understand and use different settings of time, temperature on different machines for different biscuit products. Specifically, oven operating skills are in demand where technical knowledge leading to efficiency of operations is required (e.g. oven operators in Biscuit making). However, in the informal sector, cooking and frying, recipe making and baking skills are in demand. 38F

39

Agri – Food Processing (Primary Process Foods)

3.6.4 Pakistan has a range of agro-climatic zones where diverse commercial crops are grown. This sector includes all food produced agriculturally which includes primary processing of fruits

35

Economic Survey of Pakistan 2013 -14 36 Data retrieved from http://www.mitchells.com.pk 37 Annual Report of English Biscuit Manufacturers 38 Annual Report of Continental Biscuits Limited 39 Discussions with Sector Experts, In depth Interview



Final Report

and vegetables fresh produce, flour, sugar, pulses and grains. The agriculture sector accounts for 21 % of GDP and 43.7 % of employment.39F

40 3.6.5 The table below depicts the global agricultural output and current standing of Pakistan40F

41:

TABLE 19: LARGEST COUNTRIES BY

AGRICULTURAL OUTPUT

Countries 2014 (Billions in USD)

China 1,036

India 356

EU 331

USA 192

Nigeria 184

Brazil 123

Indonesia 122

Russia 86

Turkey 72

Pakistan 61

Fresh Fruits and Vegetables 3.6.6 More than 22 varieties of vegetables are produced in our country. The kharif 41F

42 vegetables includes: lady finger, squash, brinjal, bitter gourd, bottle guard, pumpkin, lufa, long melon and cucumber etc. The rabi 42F

43 vegetables include: radish, turnip, carrot, spinach, cauliflower, cabbage, sweet potato, peas and tomatoes etc. Potatoes are produced all year round. The table below depicts production of vegetables in Pakistan, particularly in Punjab in the year 2012. 43F

44 TABLE 20: PRODUCTION (TONNES)

Crops Kharif Rabi

Production (tonnes)– Pakistan

917,413 2,194,186 Potatoes – 3,392,493

Production (tonnes) – Punjab

577,235 1,970,655 Potatoes – 3,235,322

Flour 3.6.7 There has been tremendous increase in the milling capacity in Pakistan. In 1947, Pakistan had only 19 flour mills but now there are total 1,350 flour mills spread across the country. There are 915 registered flour mills working in Pakistan, with the daily milling capacity of 77,275 Metric Tonnes daily.44F

45

TABLE 21: NUMBER OF FLOUR MILLS

40 Economic Survey of Pakistan, 2014 41 International Monetary Fund 42Kharif crops are domesticated plants cultivated and harvested in the Punjab Province, during the rainy (monsoon) season, which lasts between June and September 43Rabi crops, in Punjab Province, refer to agricultural crops sown in winter and harvested in the spring. The rabi crops are grown between the months November to March.

44 Ibid 41 45Pakistan Flour Mills Association

https://en.wikipedia.org/wiki/Crop

https://en.wikipedia.org/wiki/Winter



Final Report

Total No. of Flour Mills Registered Unregistered

Pakistan 1,350 915 435

Punjab 1,080 732 348

Sugar Sector 3.6.8 The sugar industry in Pakistan is the second largest agro-based industry. Pakistan is an important cane producing country and is ranked fifth in the world cane acreage and 9th in sugar production. The share of sugar industry in value added of agriculture and GDP are 3.2% and 0.7%, respectively. The sugar sector constitutes 4.2% of manufacturing. It directly or indirectly employs over 1.5 million people, including management experts, technologists, engineers, and financial experts, skilled, semi-skilled and unskilled workers.45F

46 3.6.9 Punjab is the highest producer of sugar with 3.17 million metric tonnes recorded in the year 2012 – 2013.46F

47There are 45 sugar mills located in Punjab and it directly or indirectly engages a total workforce of 790,000 people which shows the importance of for Human Resource Development in this sector. 3.6.10 The Food and Beverage Industry makes a heavy use of sugar. It is used in the confectionary industry in the making of candies, chocolates and lollipops. Cordial industry makes heavy use of sugar in brands like RoohAfza and Jam e Shirin; it is used in the making of juices, jams, biscuits and mithai (sweets) industry. 47F

48 Pulses & Grains 3.6.11 Pulses are the most important source of vegetable protein in Pakistan. They are cultivated on 5% of the total cropped area. Their use ranges from baby food to delicacies of the rich and the poor. Because of the population growth, demand for pulses is increasing day by day. The total area under major pulse crops in Pakistan is about 1.5m hectares. Among these pulses, chickpea is the major winter food legume and moong (Mung Bean) is the major summer legume. Chickpea occupies 73% of the total pulses area with 76% contribution to the total production, whereas mung bean occupies 18% of total area devoted to pulses contributing 16% to the total pulses production. The black gram and lentil, each are cultivated on 5% of the total pulses area and each of them contributes 5% to the total pulses production. 48F

49 3.6.12 The table below depicts the production of food grains in past 4 years. It shows an increase of 7.1% in 2013 - 14. 49F

50

TABLE 22: PRODUCTION OF FOOD GRAINS

Years (000) Tonnes

2010-11 34,302

2011-12 34,478

2012-13 34,468

2013-14 37,097

46 Pakistan Sugar Mills Association 47 Economic Survey of Pakistan, 2012 -13 48Ibid 47 49 Pakistan Agricultural Research Council 50 Federal Bureau of Statistics



Final Report

3.8 Employment in Processed Food Industry

3.8.1 The food processing industry employs 183,891 people in Punjab. A further bifurcation of number of employees with respect to the sub sectors of food processing industry is depicted in table below, and it can be seen that processed food has the highest workforce share.

TABLE 23: TOTAL NUMBER OF EMPLOYMENT IN PUNJAB 50F

51

Sub – Sector in Food processing industry 2012 2013

Processed food 103,633 109,592

Edible Oil & Fats 10,539 11,145

Beverage 8,782 9,287

Bakery & Confectionery 50,938 53,867

Total 173,892 183,891

3.8.2 The labor force is generally unskilled, with 70% of them having an educational level below the 10thstandard as confirmed by majority of sector experts contacted for the survey. This sector actually requires highly skilled people given the intricate and varying natures of products and production methods in this sector. 51F

52

51Based on the estimates and percentages provided by Federal Bureau of Statistics, Economic Survey of Pakistan (2010-2013) and SMEDA 52 Federal Bureau of Statistics 2012 -2013



Final Report

4. Findings of the Formal and Informal Establishments’ Survey

4.1 Respondent’s Profile

4.1.1 This section provides a brief overview of profiles of the respondent companies (formal/informal) based on the results and analysis of the quantitative survey of food processing units. This section will also provide an insight on;

Respondents’ organization size, Annual production and sales turnovers, Type of Ownerships, Type of products they are manufacturing, Level of Automation in production facility etc.

Organization Size and Respondents’ Distribution 4.1.2 For the purposes of analysis, respondent organizations were categorized into four categories namely,

Micro Small Medium Large scale organizations

4.1.3 The number of employees was used to determine the size of the organizations as defined by the Small and Medium Enterprise Development Authority (SMEDA) – Ministry of Industries and Production. This classification along with the number of respondents in each category is presented in the table below:

TABLE 24: ORGANIZATION SIZE CRITERIA

S. No Classification Number of

Employees

Number of

respondent

companies

% distribution of

companies

1. Micro Less than 10

employees 73 39%

2. Small 11 – 30 employees 59 32%

3. Medium 31 – 99 employees 26 14%

4. Large

100 and above

employees

27 15%

4.1.4 Additionally, bifurcation of respondent companies with respect to the nature of establishment (formal and informal) and geographical presence (north, south and central Punjab) is depicted in figure below.



Final Report

FIGURE 4: BIFURCATION OF RESPONDENT COMPANIES WITH RESPECT TO SIZE OF COMPANIES

AND GEOGRAPHICAL PRESENCE

Entity Registration

4.1.5 Figure 5 below shows the registration status of the organizations covered in the study. 58% of the organizations surveyed were registered businesses (formal organizations). A further bifurcation of registered and unregistered organizations with respect to their organizational size is portrayed in table 25, which states that majority of the informal organizations (91%) lies in the category of micro scale (providing employment opportunities, on an average, to less than ten persons per organization) . Moreover, 50% of the formal organizations are falling in ‘small scale’ category followed by 25% in Large Scale.

FIGURE 5: ENTITY REGISTRATION

TABLE 25: BIFURCATION OF RESPONDENT COMPANIES WITH RESPECT TO NATURE AND SIZE OF

COMPANIES

Organization Size Number of Employees Formal Informal

No. % No. %

Micro Scale Less than 10 2 3% 71 91%

Small Scale 11 - 30 54 50% 5 6%

Medium Scale 31 - 99 24 22% 2 3%

Large Scale 100 and above 27 25% 0 0%

45%

24%

17% 14%

36% 36%

19%

9%

39%

32%

12%

17%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Less than 10 (Micro) 11 - 30 (Small) 31 - 99 (Medium) 100 and above (Large)

North Punjab South Punjab Central Punjab

58%

42%

Registered Unregistered



Final Report

Industry Representation 4.1.6 The region wise industry/sub sector breakup of respondent organizations is depicted in the table below. It can be seen that processed food sector has highest representation in each region followed by Bakery and confectionery across both northern and central Punjab.

TABLE 26: REGION WISE INDUSTRY BREAKUP

Industry North Punjab South Punjab Central Punjab

No. % No. % No. %

Value-added Processed

Food 20 69% 32 68% 58 52%

Edible Oils 2 7% 3 6% 6 6%

Beverages Production 2 7% 2 4% 6 6%

Bakery and

Confectionery 5 17% 10 22% 39 36%

Total 29 100% 47 100% 109 100%

4.1.7 A further classification of participating organizations with respect to nature of the company (formal/informal) is illustrated in figure 6 below;

FIGURE 6: RESPONDENT COMPANIES WITH RESPECT TO NATURE OF COMPANIES AND TYPE OF INDUSTRY

4.1.8 Figure 7 below depicts that survey covered 73% organizations which were producers followed by 12% exporters and 10% distributors/suppliers.

FIGURE 7: TYPE OF BUSINESS

0%

10%

20%

30%

40%

50%

60%

70%

Value-added

Processed Food

Edible Oils Beverages

Production

Bakery and

Confectionery

57%

10%

2%

31%

63%

0%

10%

27%

Formal Informal

73%

10%

5%

12%

Producer

Distributor/Supplier

Importer

Exporter



Final Report

4.1.9 Majority of the companies in the survey were ‘proprietorship businesses’ (60%), followed by private limited companies (27%). 4.1.10 A further cross sectional analysis of ‘organization size’ with ‘type of ownership’ indicates that majority of Micro Scale companies’ owners are proprietors, whereas majority of large scale organizations are private limited companies. Further details are shown in table 27 below;

TABLE 27: ORGANIZATION SIZE VS OWNER SHIP OF THE COMPANY

Organization Size Proprietorship Partnership Public Limited Private Limited

No. % No. % No. % No. %

Less than

10 (Micro) 71 54% 0 0% 0 0% 2 5%

11 - 30 (Small) 36 28% 8 57% 1 100% 14 36%

31 - 99 (Medium) 13 10% 5 36% 0 0% 8 21%

100 and above

(Large) 11 8% 1 7% 0 0% 15 38%

Total 131 100% 14 100% 1 100% 39 100%

Type of Markets 4.1.11 The following tables show the local and international locations where our respondents are mainly supplying/exporting their products (raw materials, semi-finished goods or finished goods). Some of the responses were not specific. Respondents replied with either “Punjab” or “Nation- wide”. Survey results indicate that the majority of the respondent companies were supplying their products to customers based around Lahore (Central Punjab) which stands to reason considering Lahore represents a large market by virtue of it being a significant population concentration. The majority of processed food products are being exported to Afghanistan followed by Iran and Middle East.

60% 12%

1%

27%

Proprietorship

Partnership

Public Limited

Private Limited

FIGURE 8: TYPE OF OWNERSHIP



Final Report

TABLE 28: LOCAL MARKET Local Markets

Areas % Areas %

Lahore 20% Punjab 2%

Multan 7% Jehlum 2%

Gujranwala 6% Attock 2%

Nation wide 5% Narowal 1%

Sargodha 5% Sahiwal 1%

DG Khan 4% Lodhran 1%

Faisalabad 4% Kasur 1%

Islamabad 4% Rajanpur 1% Urban Area 4% North 1%

Bahawalpur 3% Sheikhupura 1%

Sialkot 3% Chiniot 1%

KPK 2% Vehari 1%

Okara 2% Karachi 1%

No Responses 15%

TABLE 29: INTERNATIONAL MARKET

International Markets

Areas % Areas % Afghanistan 15% UAE 12% Iran 14% UK 12% Middle East 13% No Response 34%

Annual Sales Turnover 4.1.12 Figure below depicts annual sales turnover of participating organizations. Although 62% of the organizations participated in the study stated their annual sales turn over in the range of ‘less than 1 million’, this information may not be correct as people are generally reluctant to share their actual financial details.

FIGURE 9: ANNUAL SALES TURNOVER

Levels of Automation 4.1.13 Figure 10 below shows the type of production facilities (with respect to level of automation) installed in respondents’ organizations. It can be seen that majority of the operations in sector are still being carried out manually (manual-with hands/tools and Manual by Machine), which also illustrates that there is a need for skilled manpower and successively the demand for technical trainings in manual processes in the sector. This also depicts a potential in terms of employment opportunities for skilled labor in the sector.

62% 16%

9%

13% Less than 1 Million

1 Million - 10 Million

11 Million – 30 Million

31 Million – 50 Million

and above



Final Report

4.1.14 A further detailed analysis (figure 11 below) of the levels of automation with respect to nature of companies illustrates that most organizations using manual operations belong to either informal or micro categorizations. These information/micro setups by virtue of their smaller size and lack of access to more capital and capital intensive manufacturing also represent, by similar virtue, substantial demand for technical trainings in manual processes. Furthermore, formal organizations that employ the majority of the workforce available to the sector are more inclined towards semi-automated and fully automated operations (when compared with informal organizations) and continuously moving towards further automation. These organizations represent an entirely different demand profile for technical skills as their drive towards automation skews their demand towards technically competent and skilled labor.

FIGURE 10: PRODUCTION FACILITY

FIGURE 11: PRODUCTION FACILITY VS NATURE OF COMPANIES

4.1.15 Further cross sectional analysis of level of automation with respect to organization size is described below. It can be seen that fully automated technology is mostly installed in large scale organizations whereas micro level companies are mostly using manual operations.

TABLE 30: PRODUCTION FACILITY VS NATURE OF COMPANIES

Level of Automation Micro Small Medium Large Total no. of organizations

Fully Automated 3 6 5 15 29

Semi-Automated 4 4 10 6 24

Manual By Machines 14 19 7 4 44

16%

13%

24%

47%

Fully Automated Semi-Automated

Manual By Machines Manual by hand tools

0%

10%

20%

30%

40%

50%

60%

70%

80%

Fully Automated Semi-Automated Manual By

Machines

Manual by Hand

tools

25% 19%

26% 30%

3% 5%

21%

71%

Formal Informal



Final Report

Manual by hand tools 52 30 4 2 88

Total 73 59 26 27 185

Type of Products

4.1.16 The following table depicts the type of products which respondents companies are manufacturing in their production facilities. 70% (131 respondents) of the respondent companies are associated with manufacturing of Processed Foods (with 59% in manufacturing of value added and frozen food processing and 11% in edible oils and beverages products) and 30% are associated with manufacturing of Bakery and Confectionery Products (with 12% in General Bakery Products, 12% in ethnic and other confectionery products and 6% in Biscuits and other Dry Bakery Products;

TABLE 31: SUB- SECTOR AND PRODUCTS Category Sub-category Products

Processed Foods 131 Respondents 70%

Value Added & Frozen Food Processing 110 Respondents 59%

Frozen Vegetables 5%

Frozen Snacks/ Frozen Meals (only wheat and vegetable based products)

5%

Jams, Jellies, Marmalades 5%

Chutneys, Pickles, Achaar 9%

Sauces and Vinegar 4%

Squashes, Concentrates, Fruit Juices & Fruit Juice Drinks 2%

Seasonings & Spices 3%

Dry Vermicelli, Noodles & Spaghetti, Pasta & Macaroni 4%

Canned Fruits and Vegetables 5%

Snack Foods (potato crisps, salted nuts, products from rice flakes & corn grits, lentil & gram snacks)

17%

Total 59%

Edible Oils and Beverages Products 21 Respondents 11 %

Vegetable Oil 3%

Fruit Oil 1%

Ghee 1%

Margarine 1%

Total 6%

Aerated Drinks 1%

Juices 3%

Bottled Water 1%

Total 5%

Total -Processed Foods 70%

Bakery and Confectionery 54 Responses 30%

General Bakery Products/ Bakers 22 Respondents 12 %

Cakes/Pastries 2%

Breads 5%

Rusks 0%

Doughnuts 1%

Pies 1%

Muffins 3%

Total 12%

Ethnic & Other Confectionery Products 23 Respondents 12 %

Ethnic Confections (Mithais and Nimkos) 5%

Other Confectionery 2%

Toffees 2%

Candies 2%

Bubble Gum 1%

Jellies 0%

Chocolates 0%

Total 12%

Biscuits & Other Dry Bakery Products

Biscuits 4%

Specialty Mixes & Concentrates 2%

Total 6%



Final Report

9 Respondents 6 %

Total-Bakery and Confectionery 30%

4.2 Work Force Characteristics Number of Employees 4.2.1 The survey results indicate that the total work force of respondent establishments is 27, 346. Out of which 26, 701 (97.6%) work in formal sector and remaining 645 (2.4%) work in the informal sector.

4.2.2 The further bifurcation of employees with respect to ‘company size’ and ‘industry type’ is depicted in figures below.

FIGURE 12:NUMBER OF EMPLOYEES WITH RESPECT TO INDUSTRY TYPE

4.2.3 An interesting cross sectional analysis of results of Figure 12and table 26 above indicates that edible oil segment is providing promising employment opportunity, may be due to size and level of operations involved; as only 11 oil companies are currently employing 6,180 (22.5% of total work force) employees compared to processed food sector where 110 companies are employing 18,130 employees (66.3% of total work force). 4.2.4 The cross section of average number of employees per unit and number of units under each company category (organization size wise) is shown in table below;

TABLE 32: AVERAGE NUMBER OF EMPLOYEES WITH RESPECT TO ORGANIZATION SIZE

Organization

Size

Size of Company

Overall Results

No. of Units Covered

in Survey

Approx. Avg. No. of

Employees per Unit

Less than 10 (Micro) 73 7

11 - 30 (Small) 59 21

31 - 99 (Medium) 26 55

100 and above (Large) 27 894

18,130

6,180

165 2,871

Value-added Processed

Food

Edible Oils

Beverages Production




Final Report

4.2.5 Employment status with respect to nature of companies is illustrated in figure below. The results for both formal and informal companies indicate that majority of employees in both setups (formal/informal) are permanent employees 52F

53 followed by contractual employees 53F

54.

FIGURE 13: EMPLOYMENT STATUS

Number of Employees VS Job Roles

4.2.6 Table 33 below shows that majority of the workforce (male and female) in food processing

industry is working in the category of other skilled workers and elementary occupations while

34% are working as technicians and associate professionals, managers, craft and related trade

workers and plant/machine operators. It can also be seen that majority of female employees

are placed in jobs that require less physical activity. Roles in which women are working in food

processing sector include; managerial roles, ‘elementary occupations’, ‘other skilled workers’

and ‘clerical support workers’ categories. Only 1% of all female employees covered in this

survey are working in managerial roles however it is observed that in some positions, women

outnumber their male counterparts. These female intensive positions include plant and machine

operators, clerical support and in elementary occupations.

TABLE 33: NO OF EMPLOYEES VS JOB TITLES

Job Titles

Total No of Employees

Male Employees Female Employees

No. % No. % No. %

Managers 1,247 5 1,230 5% 17 1%


1,351 5 1,343 5 8 0


1,410 5 1,254 5 156 7

Plant and Machine Operators 5,247 19 4,747 19 500 23

Clerical Support Workers 4,941 18 4,505 18 436 20

Other Skilled Workers 6,461 24 5,959 24 502 23

Elementary Occupations 6,689 24 6,130 24 559 26%

53Permanent employees or the regular employees, work for an employer and are paid directly by that employer 54contractual employee, is someone who works for a business on a project or on finite (usually less than 12 months) basis

12,792

6,099

4,674

3,136

454 99 77 15 -

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Permanent Contractual Daily wage workers paid on

daily rate

Daily wage workers paid on an

hourly rate

Formal Informal



Final Report

Overall 27,346 100 25,168 100 2,178 100

Average Wage

4.2.7 The table below shows that majority of the workforce earns an average monthly salary of Rs. 10-15 thousand (36% overall regardless of their employment status). Surprisingly 15% of the employees also reported to have an average monthly salary of 1-5 thousand rupees, which appears to be a contradiction with minimum wage laws in Pakistan.

TABLE 34: WORKERS SALARY RANGES

Employment Status Ranges of Monthly Average

Wage 54F

55 Overall

Permanent

No. %

1,000 - 5,000 8 4%

5,001 - 10,000 15 8%

10,001 - 15,000 39 21%

Above 15,000 10 5%

Contractual

1,000 - 5,000 0 0%

5,000 - 10,000 9 5%

10,001 - 15,000 22 12%

Above 15,000 5 3%

Daily wage workers paid on daily rate

1,000 - 5,000 10 5%

5,000 - 10,000 11 6%

10,001 - 15,000 4 2%

Above 15,000 3 2%

Daily wage workers paid on an hourly rate

1,000 - 5,000 11 6%

5,000 - 10,000 4 2%

10,001 - 15,000 2 1%

Above 15,000 0 0%

No Response 32 18%

Total 185 100%

Turnover Rate 4.2.8 As stated by respondents, the overall turnover rate of employees is low, ranging between 0%-10% at worker level and middle management level respectively. Hence it may be ascertained that organizations either have good employee retention policy or employees do not prefer to switch because of the current economic scenario of Pakistan. Further details are mentioned in table below:

FIGURE 14: TURN OVER RATE

55Daily wage workers (paid on daily/hourly rates) are also paid at the end of the month by the respondent companies



Final Report

Middle Management: Middle management is the intermediate management of a hierarchical organization that is subordinate to the executive management and responsible for at least two lower levels of junior staff. Typical job titles include Food technologist, Food Preserver, Production Manager, Food Quality Assurance Manager/Supervisor, Bio-technologist etc.

Worker Level: refers to factory workers, working under middle management. Typical job

titles include technicians, general labor, general office staff, bakers, confectioners, machine

operators, food graders etc.

Education Profile 4.2.9 Following table depicts the educational profiles of the employees of respondent organizations. Results indicate that majority of managers are either Masters Level qualified or graduates. Interestingly, people with intermediate or less qualifications are also reported to be working at managerial level which may be because of their experience or they may be owners of the establishments. In the informal sector, majority of businesses are being managed by owners themselves.

4.2.10 It has also emerged from the survey that large scale organizations and medium sized companies have a preference for hiring staff with formal educations, professional degrees, and diplomas. It is speculated that this is so, because these organizations bear proper management teams and possess some organizational structures to house these posts and qualifications. Furthermore, it appears that the smaller and micro respondents prefer experience over formal education in their hiring. This can be attributed to these units being mostly sole proprietorships (60%, as mentioned in Figure 8above) with managerial and operational authority concentrating in the owner and upon the manual nature of the work processes dominating this category of unit (out of 132 micro and small size companies, 115 using manual by machine and manual by hand tools processes) as depicted in 29above.

TABLE 35: QUALIFICATION VS ROLES GRID (OUT OF 185 RESPONDENTS)

Job Level

Qualification

MBA / Post

Graduates

Graduates

Diploma Holder /DAE

Intermediate

Middle

Primary

Less than

Primary

Some Education/ Religi

Illiterate

54%

23%

46% 45%

0% 0%

7%

1% 3% 0%

19%

9%

1% 0% 4% 5%

42%

77%

24%

40%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Formal Informal Formal Informal

Middle Management Workers Level

0% - 10% 11% - 25% 26% -50% Above 50% No response



Final Report

ous

Education

Managers 44% 28% 11% 14% 15% 10% 10% 14% 12%

Technicians and Associate

Professionals 15% 18% 22% 15% 13% 13% 13% 13% 13%

Professional Degree Holders 19% 17% 13% 0% 0% 0% 0% 0% 0%

Craft & Related Trade Workers 0% 4% 15% 15% 13% 13% 11% 14% 13%

Plant and Machine Operators 0% 4% 19% 15% 16% 16% 14% 15% 13%

Clerical Support Workers 8% 20% 10% 16% 10% 10% 11% 13% 15%

Other Skilled Workers 14% 9% 10% 13% 15% 15% 16% 16% 15%

Elementary Occupations-Un-Skilled and Semi-

Skilled 0% 0% 0% 12% 18% 23% 25% 15% 19%

4.2.11 Similarly the table below depicts the educational profiles of the employees of respondent’s organizations relevant to food sector. It can be seen that majority of the organizations reported the presence of ‘DAE in food technology’ professionals in their entities at different levels. This has also been established through TSPs’ qualitative analysis where majority TSPs indicated that the job prospects for diploma holders in food processing are comparatively high, and food processing companies prefer to hire diploma holders (DAE in food technology) at different levels. Further, majority of companies reported that Bachelor’s and Master’s Degree holders (in food technology) are working at Managers and Technicians levels. More details are shown below:

TABLE 36: QUALIFICATION (RELEVANT TO FOOD PROCESSING ONLY)

Job Level

Qualification

PHD /M.Sc. in Food Technology

Bachelor in food DAE Food Technology Apprentice

Managers 49% 38% 25% 14%


31% 34% 19% 17%

Professional Degree Holders

20% 28% 18% 19%


0% 0% 18% 24%


0% 0% 20% 26%

Clerical Support Workers 0% 0% 0% 0%

Other Skilled Workers 0% 0% 0% 0%

Elementary Occupations-Un-Skilled and Semi-Skilled

0% 0% 0% 0%

4.3 Skills Assessment 4.3.1 This section provides details on prompted responses 55F

56received on the ‘skills required’ (as reported by the survey respondents), both in formal and informal sector. The skills which respondents pointed out using the provided list (prompted) are classed as ‘general and non –sector specific skills’. Whereas the responses we retrieved under ‘others’ category are classed as

56Respondents were asked to respond to these questions using options available in questionnaire; which were shown to them during conduct of survey



Final Report

‘sector specific skills’ (provision for ‘others’ response was provided in questionnaire to capture sector specific skills). 4.3.2 The various skills required in food processing sector are described in table below. It can be seen that the most required general and non-sector specific skills are managerial skills followed by record keeping, maintenance skills, health and safety skills and problem solving skills. Further various most required skills under the ‘Sector Specific Skills’ section (as reported by the survey respondents) is depicted in table 37 below. 4.3.3 When the respondents were asked about the skills for which Technical and vocational education (TVE) is required, most of the respondents for general skills pointed out managerial skills, information technology skills, plant/machine repairing skills, training skills and machine/tool operating skills and problem solving skills. Similarly for sector specific skills majority of respondents pointed out Food technology, bio-technology and quality assurance skills for which TVE is required. 4.3.4 Further, the skills which require on-the-job and off-the-job training in view of most of respondents (who replied to these questions) are also shown in the table. It can be seen that most preferred method of training in views of most of respondents is on-the-job training. The skills under ‘general and non-sector specific skills’ category for which majority of the respondents believe off-the-job is best suited are Managerial skills, plant /machine repairing and health and safety skills, project management and numeracy skills. Similarly off- the- job is best suited for food technologist, food quality assurance and food preserving skills under ‘sector specific skills’ category. 4.3.5 Finally when the respondents were asked about whether these skills (prompted and other responses) are easy available or hard to find, the results we retrieved are shown below. Majority of the respondents pointed out managerial skills, project management skills, plant/ machine operating, maintaining and repairing skills, numeracy and IT skills as Hard-to-fill under ‘general skills’ category. Whereas food technologist, food quality assurance, food planner, food preserver, product knowledge and bio-technology skills were pointed out as hard to fill under ‘sector specific skills’ category.

TABLE 37: SKILLS ASSESSMENT - FOOD PROCESSING SECTOR

Ge

ne

ral

an

d N

on

Se

cto

r S

pe

cifi

c Sk

ills

List of possible skills

Skills required

Prompted

Skills where TVE is

required

OJT best

suited

Off-the-Job

trainings best

suited

Future Skills Needs

Skills Availability %

% % % % % Easily

Available Hard

to find

Managerial Skills 6% 8% 5% 6% 5% 4% 7%

Administrative Skills 5% 4% 4% 3% 5% 3% 6%

Leadership Skills 3% 4% 4% 4% 4% 4% 3%

Project Management Skills 4% 4% 4% 6% 4% 2% 4%

Training Skills/ Coaching Skills 4% 5% 4% 5% 4% 3% 4%

People Management Skills 4% 3% 4% 3% 4% 4% 4%

Supervisory Skills 5% 4% 4% 4% 5% 8% 3%

Problem Solving Skills 5% 5% 4% 4% 5% 3% 6%

General Office Work Skills 4% 3% 4% 4% 4% 8% 2%

Record Keeping/ Maintaining Skills 5% 5% 5% 4% 5% 8% 4%

Plant & Machine - Operating Skills 5% 4% 5% 4% 5% 1% 7%

Plant & Machine - Repairing Skills 5% 6% 6% 6% 5% 2% 7%

Plant & Machine - Maintenance Skills 5% 4% 5% 4% 5% 3% 7%

Plant & Machine - Health & Safety Skills 5% 5% 5% 6% 5% 4% 6%

Packing Skills 4% 4% 5% 4% 5% 6% 4%

Basic Hand tools skills 5% 5% 6% 5% 4% 8% 3%

Simple Machine/Tools Operating Skills 4% 5% 5% 5% 4% 6% 3%



Final Report

Technical Skills56F

57 5% 5% 5% 4% 5% 2% 6%

Communication 4% 4% 4% 4% 4% 8% 2%

Numeracy 4% 4% 4% 6% 4% 2% 5%

Information Technology/ICT 4% 6% 4% 4% 4% 2% 5%

Team Working and Interpersonal Skills 5% 3% 4% 5% 5% 9% 2%

Se

cto

r S

pe

cifi

c S

kil

ls

Cooking and Frying 6% 9% 7% 6% 5% 5% 6%

Recipe Making 7% 5% 5% 6% 5% 7% 5%

Baking 4% 6% 4% 5% 5% 6% 4%

Food Technologist 8% 8% 10% 10% 9% 3% 13%

Food Quality Assurance 8% 8% 9% 9% 8% 4% 11%

Food Planner 7% 6% 8% 8% 8% 4% 9%

Food Preservation 8% 5% 7% 8% 8% 5% 10%

Procurement Skills 8% 5% 7% 7% 7% 11% 6%

Product Knowledge57F

58 7% 5% 6% 6% 5% 7% 7%

Chocolate making 2% 3% 2% 2% 2% 3% 1%

Confectionary / Confectioner 4% 7% 3% 4% 4% 7% 2%

Pastry Cooking 3% 4% 3% 5% 3% 4% 2%

Bio technology 6% 8% 7% 4% 7% 3% 8%

Fruit Preserver 2% 4% 3% 3% 2% 2% 2%

Oil Expeller Operating Skills 1% 2% 1% 2% 1% 1% 1%

Bottling Skills58F

59 1% 1% 1% 2% 1% 1% 1%

Batch Making skills/Batch Operations 3% 3% 3% 4% 4% 3% 3%

Transportation Skills59F

60 5% 4% 5% 4% 5% 10% 1%

Food Tasting Skills 5% 3% 6% 3% 5% 8% 4%

Food Grading Skills 5% 4% 5% 2% 6% 6% 4%

Reasons and Measures Taken 4.3.6 According to majority of the respondents, the main reasons of skills shortages in those areas identified as ‘Hard to Find’ and measures taken by the industry to overcome difficulties in finding these skills are depicted below. Majority of the respondents believe that Lack of required qualification and lack of OJTs are the major reasons of having majority of ‘hard to fill vacancies’ in sector, as there is an acute shortage of people with desired skills and experience in the sector. However respondents believe that increased training activities both at workers and middle management levels can greatly overcome this shortage.

TABLE 38: REASONS AND MEASURES TAKEN-HARD TO FIND SKILLS (OUT OF 185 RESPONSESS) Reasons

% Measures Taken %

Lack of required qualification 32% Increased training activity 32%

Lack of training opportunities (OJT, off-the-job training)

24% Changing work practices/ reallocating work

22%

57Technical skills are the knowledge and capabilities to perform specialized tasks related to Food Processing 58Product knowledge is an essential sales skill required in food processing industry which allows sales person to present benefits of the products to customers accurately and persuasively. 59Bottling skills require the knowledge and capabilities to; fill, pack, operate bottling machinery and make sure that the production lines are loaded 60Transportation skills require; lifting, transferring and positioning load, maintaining security and safety while loading /unloading consignments and efficient handling of\ transport



Final Report

Reasons

% Measures Taken %

Lack of required skills (technical/ practical)

17% Promoting exposure to practical and theoretical training

16%

Lack of required experience to perform the job

16% Introduction to new technology/ Eliminate workforce

15%

Lack of soft skills (communication, numeracy, etc.)

11% Increase recruitment activity/ Introduce new channels for recruitment

15%

Future Skills Demand Scenario in Food Processing Sector 4.3.7 Based on the responses congregated through survey exercise, the table below depicts the future demand scenario of skills required in the next 5 years or skills for which demand is expected to increase under each job role in next five years. The actual demand figures for these skills are depicted in ‘Demand Projection’ section of chapter 7 below;

TABLE 39: SKILLS REQUIRED IN FUTURE FOR SPECIFIC ROLE (LISTED IN DESCENDING ORDER)

Job Level

Job Titles Skills Required in Future for specific role (listed in descending order)



Final Report

Job Level


Ma

na

ge

rs

Productions Manager

Managerial Skills

Administrative Skills

Leadership Skills

Supervisory Skills

Problem Solving Skills

Communication

People Management Skills

Plant & Machine - Operating Skills

Plant & Machine - Repairing Skills

Plant & Machine - Maintenance Skills

Plant & Machine - Health & Safety Skills

Operations Manager


Leadership Skills

Supervisory Skills


Communication


Quality Control Manager

Food Quality Assurance


Product Knowledge


Procurement Manager



Communication


Distribution Manager


Communication


General Office Work Skills

Warehouse Manager


Communication



Pro

fess

ion

al

De

gre

e H

old

ers

Factory Supervisor



Supervisory Skills

Communication

Leadership Skills

Managerial Skills



Line Supervisor

Leadership Skills

Supervisory Skills


Communication





Food Technologist

Food Technologist



Communication

Recipe making




Bio Technologist Bio Technology Food Quality Assurance

Cra

ft &

Re

late

d T

rad

e W

ork

ers

Baker

Baking Skills


Basic Hand tools skills

Recipe Making

Simple Machine/Tools Operating Skills 60F

61

Technical Skills

Chocolate Maker

Chocolate making



Simple Machine/Tools Operating Skills

Confectioner



Packing Skills



Technical Skills 61F

62

Communication

Pastry Cook



Packing Skills


Technical Skills

Communication

Fruit Preserver Food Preserving

Packing Skills

Oil Expeller Oil expeller operating skills



Technical Skills

Food Grader Food Grading Skills

Food Taster Food Tasting Skills

Pla

nt

an

d

Ma

chin

e

Op

era

tors

Fully Automated Plant Operator







Oversized Heavy Duty Machine


61

Skills or knowledge required to operate and calibrate general or common machines/tools e.g. measuring machines,

cutting/mixing machines, leveling machines etc. 62

Technical skills are the knowledge and capabilities to perform specialized tasks related to Food Processing



Final Report

Job Level


Operator Plant & Machine - Repairing Skills Plant & Machine - Maintenance Skills


Medium-sized Machine Operator





Packing/ Bottling Machine

Operator Packing Skills Plant & Machine - Health & Safety Skills

Cle

rica

l S

up

po

rt W

ork

ers

+

Off

ice

Sta

ff

Production Clerk General Office Work Skills


Technical Skills

Communication

General Office Clerk General Office Work Skills Communication

Payroll Clerk General Office Work Skills

Communication

Numeracy Skills

ICT skills

Stock Clerk


Numeracy Skills

ICT skills

Communication

Oth

er

Sk

ille

d W

ork

ers

Batch Maker

Batch making/batch operation skills


Technical Skills


Lorry/ Heavy Truck/ Fork Lift

Operator Transportation skills 62F

63

Simple Machine Operator



Technical Skills

Communication

Ele

me

nta

ry O

ccu

pa

tio

ns-

Se

mi

Sk

ille

d,

Un

skil

led

Helper



Packer Packing Skills Basic Hand tools skill

Cleaner Cleaning/hygiene skills

Loader/ Un-loader



Technical Skills

Communication

Laborer Basic Hand tools skills

Workers performing work

manually Basic Hand tools skills Simple Machine/Tools Operating Skills

Workers performing work

with simple hand tools

Basic Hand tools skills Simple Machine/Tools Operating Skills

63Transportation skills involve knowledge of principles and methods for moving goods by air, rail, sea, or road, including the relative

costs and benefits.



Final Report

4.4 Recruitment and Selection

4.4.1 Figure 15 below shows that the most preferred method of recruitment employed by majority of the respondent companies was ‘advertisement through newspapers’ followed by ‘notice at factory gate’ (23%). Another 15% of the respondents use referrals by existing employees for recruitment and selection.

FIGURE 15: METHODS OF RECRUITMENT AND SELECTION

4.4.2 The table below shows the overall picture of recruitment in processed food industry. Out of 3,678 employees hired in past two years 3,407 are still working which again shows that the turnover ratio is very low. Further, 2,049 employees (out of 3,678 hired) were hired on new positions in past two years and the total number of current vacancies is 539 out of which majority (519) are in the formal sector. As could be expected, majority of the workers were hired at the level of ‘other skilled workers’ and ‘elementary occupations’ in both formal and informal sectors, followed by plant and machine operators and technicians. Lowest numbers of people were hired at the manager’s levels. Further most of the hiring took place in formal sector rather than the informal sector.

4.4.3 The table below also shows that majority of the ‘hard to fill vacancies’ are at managers, plant/machine operators, technicians and craft workers which has also emerged from sector experts’ in depth interviews. Also majority of the respondents reported that they prefer to hire or train women at ‘elementary occupation’ and ‘other skilled workers’ levels or to jobs where less physical work is required, followed by managers and plant/machine operators

TABLE 40: OVERALL RECRUITMENT SCENARIO OF INDUSTRY

Type of Workers

Hired

Total Number of Employees Hired

Hired on New Positions

Hired as Replacement Still Working No. of Current

Vacancies No. of Hard-To-Fill Vacancies

Women Hired

FO

RM

AL

INF

RO

MA

L

OV

ER

AL

L

FO

RM

AL

INF

RO

MA

L

OV

ER

AL

L

FO

RM

AL

INF

RO

MA

L

OV

ER

AL

L

FO

RM

AL

INF

RO

MA

L

OV

ER

AL

L

FO

RM

AL

INF

RO

MA

L

OV

ER

AL

L

FO

RM

AL

INF

RO

MA

L

OV

ER

AL

L

FO

RM

AL

INF

RO

MA

L

OV

ER

AL

L

Managers 195 24 219 88 16 104 107 8 115 150 11 161 80 4 84 45 0 45 15 0 15


417 28 445 310 14 324 107 14 121 455 27 482 11 0 11 7 0 7 3 0 3


351 37 388 170 24 194 181 13 194 330 22 352 2 6 8 5 0 5 0 0 0


510 22 532 250 16 266 260 6 266 452 9 469 31 0 31 24 1 25 11 0 11


399 31 430 190 25 215 209 6 215 372 7 379 17 0 17 11 0 11 6 0 6


1040 76 1116 501 57 558 539 19 558 875 31 906 205 1 206 65 4 69 22 0 22


442 106 548 335 53 388 107 53 160 575 83 658 173 9 182 44 16 60 21 4 25

Total 3,354 324 3,678 1,844 205 2,049 1,510 119 1,629 3,209 190 3,407 519 20 539 201 21 222 78 4 82

15%

53%

23%

4%

2% 1% 2% Advertisements in newspaper

Referrals by existing employees

Notice at factory gate

Contact labor contractors/labor

intermediaries

Internet



Final Report

4.5 On the Job Training

4.5.1 Out of total 185 respondents, on the job trainings (OJTs) were being provided by 50% of the participating organizations, whereas, the other half (92 establishments) stated that they were not providing OJTs to their staff. The most common reasons cited for this were lack of trained personnel and expertise to provide the trainings, which was affirmed by 54% (49 out of 92 establishments) of the respondents, followed by a lack of facilities required to provide OTJs (34%), and the nature of work that does not require trainings (7%).

FIGURE16: REASONS FOR NOT PROVIDING OJTS (OUT OF 92 ESTABLISHMENTS)

4.5.2 Survey results indicate that a variety of methods are employed to provide OJTs to staff; with close observation training and working under direct supervision being the most commonly utilized methods. A job level wise analysis reveals that for managers, the most frequently used method is that of close observation (32%) followed (closely) by working under direct supervision (29%). Due to the technical nature of the jobs, working under direct supervision is the most frequently employed practice when providing OJTs to plant and machine operators (41%) and technicians and associate professionals (33%). The OJT method that has received the least limelight from the survey respondents is job rotation.

TABLE 41: METHODS EMPLOYED TO PROVIDE OJTS

JOB LEVELS Managers 63 F

64

Technicians and

Associate Professionals

Craft & Related Trade

Workers

Plant and Machine

Operators


Other Skilled

Workers


Close observation 32% 29% 29% 33% 26% 16% 28%

Each one teach one 16% 15% 20% 11% 19% 11% 13%

Theoretical training followed by practical

exposure 13% 13% 12% 9% 10% 43% 8%

Working under direct supervision of an expert

29% 33% 32% 41% 36% 24% 36%

Job rotation 10% 10% 7% 6% 9% 6% 15%

64

Based on responses gathered, managers which require OJTs mainly include; management trainees, QC managers (to learn new

standards /testing methods which also vary within subsectors), technical managers (get OJTS on new plants/machinery/equipment), etc.

3% 3%

34%

54%

0%

10%

20%

30%

40%

50%

60%

Na

ture

of

wo

rkd

oe

s n

ot

req

uir

eO

JT

Hir

e/

recr

uit

on

lytr

ain

ed

/ e

xp

ert

sta

ff

Wa

ste

of

tim

ea

nd

re

sou

rce

s

La

ck o

f fa

cili

tie

sre

qu

ire

d t

op

rov

ide

OJT

La

ck o

f tr

ain

ed

sta

ff/

ex

pe

rtis

eto

pro

vid

e O

JT

6%

61



Final Report

4.6 Off the Job Training

4.6.1 The survey results regarding external training programs reveals that majority of the establishments do not send their employees for off the job training or they do not consider off the job training as an investment (see Figure 17 below). It is worth noting that only 18% (33 companies) of the participating establishments allocate a budget for the provision of Off the Job Training, compared to 82% establishments who have either not responded to this question or they don’t allocate any budget for such external training programs.

FIGURE 17: ESTABLISHMENTS ALLOCATING BUDGETS FOR OFF THE JOB TRAINING

4.6.2 Out of aforementioned 18% establishments who are investing in off the job training, 48% (16 out of 33 establishments) of the establishments allocate 21-30% of their total expenditure for such trainings, 39% establishments allocate 10-20% of their expenses on such training, whereas, 9% of those establishments are allotting 31-40% of their total expenditure on off the job training (see below):

FIGURE 18:% OF TRAINING EXPENDITURE SPENT ON OFF THE JOB TRAINING

4.6.3 Further out of these 18%, only 9% (Figure 19) willing to pay any sort of stipend for such off site training.

18%

82%

Yes No

39%

48%

9%

4%

10% -20%

21% -30%

31% -40%

No Response

62



Final Report

FIGURE 19: WILLING TO PAY SALARY/STIPEND

4.6.4 When questioned about the reasons for not relieving workers for offsite training, majority of the respondents mentioned lack of funds for training as a major reason in addition to the fact that employee’s switch jobs when they are sent for such external training.61% of the respondent companies did not share their views in this regard.

FIGURE 20: REASONS FOR NOT WILLING TO RELIEVE WORKERS FOR TRAININGS OFF SITE

Training Courses 4.6.5 Survey results also indicate that a broad range of training courses- relating to food processing sector, have been provided by the respondent organizations to their employees. Percentage of companies providing these courses and the number (ranges) of these courses provided at different job levels are shown in table below. As per survey results, majority of companies, at manager level preferred to send their employees for training in food preservation related courses (17%), followed by food chemistry (14%) and physical properties of food materials (12%). Similarly, at technicians and associate professional level advance technology (17%) and food process engineering courses (17%), followed by computing technology in food processing (16%) are most popular courses. Craft and related trade workers readily seek training in heat and mass transfer (16%). However, for plant and machine operators, courses similar to those for technicians are most popular e.g. advance technology (17%) and ‘computing

9%

91%

Yes No

1% 1% 2% 6%

13% 13%

3%

61%

0%

10%

20%

30%

40%

50%

60%

70%

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technology’ (17%). Moreover, for other skilled workers, the most sought trainings are food processing and preservation (18%) and food micro biology (18%).

4.6.6 The aforementioned results may lead us to the conclusion, which has also been supported by the qualitative analysis (IDIs with TSPs and Sector Experts) that there is a potential demand for courses like; Food Preservation, Food Chemistry and Physical properties of Food, Heat and Mass Transfer, Product development, Advance technology and also for soft skills like basic accounting, IT and health and safety skills.

TABLE 42: TRAINING COURSES PROVIDED64 F

65

TRAINING COURSES

JOB LEVELS

Managers Technicians

and Associate Professionals

Craft & Related Trade

Workers

Plant and Machine

Operators




% No.s % No.s % No.s % No.s % No.s % No.s % No.s

Food chemistry 14% 1 to 5 9% 1 to 5 6% 5 to 10 8% 5 to 10 0% - 8% 10 to

20 9%

10 to 20

Physical properties of Food Materials

12% 5 to 10 8% 1 to 5 8% 10 to

20 9%

10 to 20

2% 5 to 10 8% 10 to

20 6%

10 to 20

Post-harvest engineering

7% 1 to 5 7% 1 to 5 8% 10 to

20 8%

10 to 20

0% - 9% 10 to

20 8%

10 to 20

Food Preservation 17% 5 to 10 15%

10 to 30

4% 10 to

20 7%

10 to 20

0% - 9% 10 to

20 9%

10 to 20

Heat and Mass Transfer

6% 1 to 5 5% 10 to

20 16%

5 to 10 9% 10 to

20 2% 1 to 5 7% 5 to 10 6%

10 to 20

Post-harvest handling of fruits and vegetables

9% 1 to 5 9% 1 to 5 6% 1 to 5 8% 1 to 5 0% - 8% 5 to 10 8% 5 to 10

Food regulations and legislations

8% 10 to

20 8%

10 to 20

7% 10 to

20 6%

10 to 20

7% 10 to

20 4% 5 to 10 9%

10 to 20

Food Engineering Design

7% 10 to

20 6% 1 to 5 8%

10 to 20

7% 1 to 5 0% - 2% 5 to 10 7% 1 to 5

Food process engineering

9% 5 to 10 17%

10 to 20

9% 10 to

20 8%

10 to 20

0% - 6% 1 to 5 4% 10 to

20

Material and energy balance

9% 10 to

20 7%

10 to 20

9% 5 to 10 8% 1 to 5 3% 1 to 5 7% 5 to 10 14%

5 to 10

Food quality control

6% 10 to

30 10%

1 to 5 7% 1 to 5 6% 10 to

20 4% 5 to 10 7% 1 to 5

12%

1 to 5

Food processing and preservation

9% 10 to

20 9%

10 to 20

9% 10 to

20 6%

10 to 20

0% - 18%

10 to 20

5% 10 to

20

Food micro biology

5% 10 to

20 8% 5 to 10 8%

10 to 20

9% 1 to 5 0% - 18%

10 to 20

9% 1 to 5

Food product and plant design

8% 10 to

20 15%

10 to 20

8% 10 to

20 8%

10 to 20

3% 10 to

20 7% 5 to 10 7%

10 to 20

Food packaging 7% 10 to

30 0%

10 to 20

9% 10 to

20 8% 5 to 10 2% 1 to 5 8% 5 to 10 9%

10 to 20

Agricultural processing engineering

6% 10 to

20 7%

10 to 20

7% 10 to

20 7%

10 to 20

0% - 9% 10 to

20 9%

10 to 20

Product Development

5% 1 to 5 15%

10 to 20

9% 10 to

20 16%

10 to 20

0% - 6% 5 to 10 17%

10 to 20

Operate Computing Technology In Food Processing Work Place

6% 10 to

20 16%

5 to 10 6% 1 to 5 17%

5 to 10 8% 10 to

15 7% 5 to 10 6% 5 to 10

Advance Technology

7% 10 to

20 17%

10 to 20

7% 10 to

20 17%

10 to 20

0% - 8% 10 to

20 6% 5 to 10

Merchandising, Food Processing Retail

9% 10 to

20 6%

10 to 20

8% 10 to

20 5% 1 to 5 0% - 9%

10 to 20

7% 10 to

20

Minor Machine Maintenance /Repair

6% 1 to 5 5% 10 to

20 6%

10 to 20

6% 10 to

20 1% 1 to 5 5%

10 to 20

7% 10 to

20

Quality Assurance/ Control

7% 1 to 5 9% 10 to

20 9%

10 to 20

7% 1 to 5 4% 10 to

20 7% 5 to 10 9% 5 to 10

Costing /Basic Costing

5% 10 to

20 8% 5 to 10 9%

10 to 20

9% 10 to

20 20%

10 to 15

2% 10 to

20 9% 5 to 10

Work Safety 7% 1 to 5 7% 10 to

20 7%

10 to 20

8% 10 to

20 21%

5 to 10 1% 5 to 10 8% 1 to 5

65 Results based on quantitative survey findings

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4.7 Training Service Providers

4.7.1 Figure below illustrates the awareness regarding the existence of TSPs amongst the respondents. Survey results indicate that only 12% of the companies have any knowledge about TSPs of Punjab associated with Food Processing Technology.

FIGURE 21: AWARENESS OF TSPS

4.7.2 Out of a 185 respondents, only 12% had some knowledge of the University of Faisalabad, followed by Bahauddin Zakariya University of Multan and Star Farms, both of which were known to 8% of the respondents. Surprisingly, PMAS – Arid Agriculture University, Rawalpindi was the only TSP of which the survey respondents showed absolutely no knowledge. This lack of awareness amongst the respondents regarding the existence of TSPs is a matter of concern and poses a challenge for the industry. These results are also contradictory to the results of TSPs’ qualitative analysis, where majority of the universities/TSPs pointed out that their graduates are well known to the industry and their job prospects are high especially for diploma holders. This contradiction in results may be due to reason that the TSPs are either unaware of this fact or they have not shared the correct information in order to safeguard their credentials and reputation.

12%

88%

Yes No

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TABLE 43: TSPS OF FOOD PROCESSING INDUSTRY

TSPs Knowledge of

TSP(out of 185 responses)

Receive information on training

courses

Employees Hired Intention to

Hire

The University of Faisalabad 12% 2% 3% 5%

University of Agriculture Faisalabad

6% 2% 4% 6%

Bahauddin Zakariya University Multan

8% 4% 2% 2%

The Islamia University of Bahawalpur

3% 1% 1% 1%

PMAS – Arid Agriculture University, Rawalpindi

1% 1% 1% 1%

Government College of Technology, Sahiwal

1% 1% 3% 3%

Government College of Technology, Faisalabad

3% 3% 2% 2%

Government College University, Faisalabad

4% 2% 1% 1%

Jinnah University for Women, Karachi

1% 1% 1% 1%

University of Karachi 1% 1% 1% 2%

Sindh Agriculture University, Tando Jam

2% 1% 1% 2%

University of Sargodha 3% 2% 3% 4%

University of Punjab 3% 3% 4% 6%

Star Farms 8% 1% 2% 1%

No Response 44% 75% 71% 63%

4.7.3 From the TSPs listed in Table 43 above, Figure 22 below depicts that 34% respondents are willing to or routinely provide OJTs to graduates of food sector related TSPs. Further as depicted in table 44 below, majority of these OJTs were provided for technical skills like; post-harvest handling of fruits and vegetables, food chemistry, food preservation, physical properties of food material and food process engineering. The table also depicts the actual number of graduates to whom these OJTs were provided.

FIGURE 22: WILLINGNESS TO PROVIDE OJTS

[[

34%

66%

Yes No

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TABLE 44: NO OF TRAINEES PER YEAR

Skills/ Courses % No. of Trainees /

year

Post-harvest handling of fruits and vegetables 8% 55 Per year

Food chemistry 6% 76 Per year

Food Preservation 5% 60 Per year

Physical properties of Food Materials 5% 44 Per year

Food Engineering Design 5% 89 Per year

Food process engineering 5% 90 Per year

Food regulations and legislations 5% 65 Per year

Heat and Mass Transfer 5% 40 Per year

Post-harvest engineering 5% 56 Per year

Costing /Basic Costing 4% 64 Per year

Food product and plant design 4% 65 Per year

Material and energy balance 4% 65 Per year

Minor Machine Maintenance /Repair 4% 53 Per year

Food packaging 4% 63 Per year

Food processing and preservation 4% 75 Per year

Merchandising, Food Processing Retail 4% 56 Per year

Advance Technology 3% 44 Per year

Quality Assurance/ Control 3% 43 Per year

Work Safety 3% 22 Per year

Agricultural processing engineering 3% 33 Per year

Food quality control 3% 60 Per year

Operate Computing Technology in Work Place 3% 53 Per year

Food micro biology 3% 55 Per year

Product Development 2% 43 Per year

Reasons for not providing Practical and Theoretical Training 4.7.4 Figure 23 below outlines some of the reasons for not providing practical and theoretical training to students of food processing sector’s TSPs. As per survey results, ‘lack of facilities/resources to provide training’ was the top most reason with 41% of responses. Apart from this other major reasons include; unwillingness of students/trainees towards work (affirmed by 28% of the respondents) and low productivity of the trainees which ultimately leads to a wastage of time and resources (stated by 18% of the respondents).

FIGURE 23: REASONS FOR NOT PROVIDING PRACTICAL AND THEORETICAL TRAININGS

28%

2%

1% 18%

10%

41%

Unwillingness towards work

Low concentration level/ Do not learn

from mistakesPoor response to Supervisors/ Co-workers

Low productivity/ Causes waste of time

and resourcesLack of expertise to train/ Training staff

Lack of facilities/ Resources to provide

training

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Intentions to Set-Up In House Training Facility 4.7.5 Figure 24 shows that 87% of the respondents have no intention to set up in house training facilities, whereas a very small percentage (i.e. 6%) of the respondents seemed open to the idea of such training centers in their premises if financed or set up by any other 65F

66 organization. Only 1% of the respondents were open to the idea of self-financing such in-house training centers.

FIGURE 24: INTENTIONS TO SETUP FOOD PROCESSING TRAINING CENTERS IN PREMISES

4.8 Awareness of PSDF

4.8.1 Out of a 185 respondents, only 19 had heard about PSDF; majority of which belonged to the formal sector (14 respondents). The remaining 166 respondents had no idea regarding PSDF and its role as an organization in Punjab.

TABLE 45: AWARENESS ABOUT PSDF

Heard of PSDF Formal In Formal Total

No. % No. % No. %

Yes 14 13% 5 6% 19 10%

No 93 87% 73 94% 166 90%

4.8.2 Out of these 19 respondents who showed some awareness regarding the existence of PSDF, 18 of them knew that PSDF was provider of skills and vocational training opportunities, whereas only 1 respondent was of view that PSDF had a network that spread across 14 districts of Punjab.

TABLE 46: KNOWLEDGE ABOUT PSDF ROLE IN PUNJAB

Relevant Points Formal In Formal Total

No. % No. % No. % Non – Profit Organization 0 0% 0 0% 0 0% Collaboration between government of Punjab and Department of International Development (UK) 0 0% 0 0% 0 0% Provide skills and vocational training opportunities 13 12% 5 6% 18 9% Works across 14 districts of Punjab 0 0% 0 0% 0 0% Others 1 1% 0 0% 1 1% No 93 87% 73 94% 166 89%

66

Under ‘Other Organizations’ category respondents mentioned International legitimate Financial Institutions, donor funding (if

applicable), MNCs and large scale local organizations’ Support, etc.

1% 6%

6%

87%

Self –Financing

Any other organization/institute willing tosupport/ finance the setup

Others

No

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5. Detailed Findings –Training Service Providers (TSPs)

5.1 Introduction

5.1.1 As part of the survey, consultants conducted in-depth interviews of existing TSPs (a list

of these 12 TSPs is included in the annexure 3), who were actively involved in providing

training services in Punjab. In-depth interviews aimed at capturing the current scenario of

training supply to the food processing sector and identifying gaps (pertaining to the trainings’

supply and current requirement of the industry) and how PSDF may be able to play its role to

overcome these gaps.

5.2 Summary of Findings

5.2.1 TSPs are providing courses at certification level, bachelor’s and master’s level. They are

mainly focusing on ‘sector non-specific’ or ‘core and basic’ disciples related to food technology

and nutrition. However, little or no focus is laid on ‘sector specific’ programs 66F

67. The private

sector, at present is providing certificate courses pertaining to the food sector (sector specific

courses) but without focusing on the type of skills required by the industry. It has also been

observed that TSPs need greater level of collaboration with the industry to cater to the current

skill gaps in food processing sector.

5.2.2 Additionally, TSPs require an up-gradation in terms of teachers’ capacity,

harmonization67F

68 of machinery and equipment and curriculum up gradation in line with industry

requirement of the province. Furthermore, lack of active involvement in course design and

selection is also observed at the strategic planning phase and a lot of dependency 68F

69 (curriculum

selection, review/design and up gradation etc.) on the governing bodies like Higher Education

Commission (HEC) and Punjab Board of Technical Education (PBTE) in this regard is also

reported.

5.3 Profile and Courses Offered

5.3.1 Training service providers (TSPs) selected for the survey represented a cross section of

training providers that were providing skill development support to the sector. The brief

profiles of our respondent TSPs along with their institutional and managerial capacities,

detailed courses and profiles are presented in Annexure 11.It can be estimated that the total

training capacity of ‘Food Processing Sector’ related TSPs in Punjab is 4,98469F

70 to cater the

current demand of 210,142 workforces70F

71 in the sector.

Career Prospects -Post Course Completion:

5.3.2 The table below depicts the overall scenario of ‘passing out graduates’ for various

degree programs pertaining to the food processing sector:

67 Based on the responses gathered from respondent TSPs’ interviews 68 Synchronization or alignment with the requirement of the industry 69 Please see sections 5.4.4 and 5.5.6 70TSPs’ Organizational Profiles (depicting their current capacities) and courses levels these TSPs are offering are attached as annexure 11 71Chapter 7, Table 54

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TABLE 47: POST SUCCESSFUL COMPLETION

Program Sector/

Trade/Company

Starting

Salary

Employability

Ratio 71F

72(%) Comments

Diploma of Associate Engineering

Companies such as Nestle, Engro, M.A. Foods, Mitchells, Gourmet.

Rs. 15,000 -20,000

100% Due to high demand for skilled personal in the industry diploma graduates are able to find jobs easily.

BSC Food Science & Technology

Government Sector Research Institutes Industries( Food Security)

Rs. 23,000 - 25,000

70% After degree completion students are able to find entry level jobs especially in the food security department

BS Hons. Food Sciences

Government Sector Research Centre Industries( Food Nutrition)

Rs. 23,000 - 25,000

80% Food sciences graduates are well placed in industries especially in the food nutrition department.

M.Sc. Food Science & Technology

Government Sector Research Centre Industries( Food Inspection & Quality Assurance)

Rs. 50,000+

100% Due to high demand for skilled personal M.Sc. degree holders are easily employed in industries, particularly in food inspection & quality assurance department

PhD (Food Science and Technology)

Research Centers Information not Provided

- Information not provided

Certifications(Skills for Framing and Farm Management, Food Processing and Pre-Post Harvest product enhancement, Food Baking and Cooking etc.)

Hotels, Industries, Entrepreneurship

Rs. 10,000- 15,000

70%

After certification students are able to find entry level jobs.

72 Employability ratio has been calculated by dividing the total number of pass out graduates employed by the total number of pass out graduates from any institute in any particular year.

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5.3.3 It may be inferred from the above table that DAE & M.Sc. in food technology have scope

in the industry with the highest employability ratio. TSPs need to invest resources in making

these programs better and at par to the industry requirements. It may also be ascertained that

focus is mainly on courses pertaining to food technology and food nutrition (sector non-specific

skills), rather than industry specific skills. Hence it may be suggested that ‘sector specific’

certificate courses in government sector institutes may serve as a window of opportunity for

prospective students to acquire skills within shorter time span that will eventually lead to

greater influx of skilled workforce into the industry. PSDF therefore may fund institutes to

acquire resources for providing these certification courses.

5.4 Course Selection Criteria 5.4.1 TSP representatives were asked about criteria that they employed for decisions regarding course selection. The following steps were highlighted in this regard;

Selection committee,

Industry Involvement in Selection,

Written policies for Selection criteria,

Selection Committee: 5.4.2 Over all opinions shared showed lack of central committee for the selection of courses or trades within the government sector TSPs. In views of our respondents, this was identified as the key factor that leads to lack of harmonization in courses offerings across sector. At government level, this type of decision making is disintegrated across various independent bodies (teams) of qualified individuals (Senior Professors, Dean, Chairman etc.) from the institute and they rely heavily on Governing bodies like Higher Education Commission (HEC) and Punjab Board of Technical Education (PBTE) for selection of trades.

5.4.3 In Private Sector institutes, trade and courses are mostly selected by team members or independent committees comprising of institution heads. Selection of new courses is mostly done by conducting independent in-house research. Courses are selected as per their own understanding of the industry requirements without including the industry representatives during finalization of trade and course selection, which leads to the lack of harmonization between TSPs and Industry.

Industry Involvement in Selection Process: 5.4.4 Based on our discussions, very few TSPs are involved in conducting surveys and

gathering opinions from the industry experts prior to selection of trades. Majority stated that

surveys are only conducted by their respective governing bodies such as HEC & PBTE. These

governing bodies intermittently consult industry experts and also monitor courses that are

being offered abroad to ensure standards are met and TSPs follow their guidelines accordingly.

But the current efforts are not enough in order to meet the increasing demands of the sector

with reference to the quality of curriculum and selection of new courses relevant to food sector.

5.4.5 TSPs also stated that they are willing to offer new courses related to food processing

technology if the market demands.

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Written Policies for Selection 5.4.6 University of Punjab and Sargodha involve members from agriculture board, the board

of studies, agricultural sciences and the University Faculty Board (Academic Council) to help

them in developing policies for selection of trades. TSPs governed by HEC, TEVTA and PBTE

follow standards and policies set by these bodies for selection criteria (selection of courses).

Private sector institutes have no written policy; however they refer to guidelines laid out by

TEVTA and NAVTTC.

5.5 Development of Curriculum and Course Content Steps in Curriculum Development 5.5.1 The TSPs reported that the key steps followed during development of curricula and course content were;

Objectives of curriculum, Industry experts’ involvement for Curriculum development, TSPs’ involvement in curriculum development Frequency of reviewing the curricula design, Uniformity of course content and matching the requirements of the job market.

Objectives of Curriculum 5.5.2 Respondents are of the opinion that it is vital to identify objectives before development

of curriculum and course content for any trade/program. Majority stated that main objective

while designing curriculum is to ensure quality professionals are produced for the industry and

curriculum is designed in a manner that covers requirements for the local as well as

international market. The aim is to ensure students get to learn techniques and practices

relevant to the trade and industry. TSPs are also of view that it is essential to conduct a

comprehensive study of industry requirements and skills gaps identification before designing

the curriculum for any particular trade, but this is not happening at the moment.

Industry Experts Involvement for Curriculum development 5.5.3 Most Government sector TSPs pointed out that they only follow guidelines set out by

HEC and PBTE for designing curriculum and this is done by respective departmental heads.

These Government bodies do consult industry experts before designing and developing course

content and curriculum respectively but TSPs independently do not conduct any industry

research or identify gaps before developing and finalizing curriculum.

5.5.4 But Private sector institutes do not collaborate with industry experts at the time of

designing the curriculum; as a result curriculum is designed by only referring to guidelines set

out by TEVTA and NAVTTC. Hence there is a gap between what is taught and what is currently

required by the industry.

5.5.5 Therefore it can be suggested that PSDF may facilitate private sector TSPs by bridging

the gap between the industry representatives and the institutes. It can be done by funding or

sponsoring workshops and seminars. These workshops will provide platforms to industry

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representatives and university management where they can gather under one roof and share

knowledge in more comprehensive way. This way the skills gaps of the sector can be effectively

addressed.

TSPs Involvement in Curriculum Development

5.5.6 It has been observed from the survey that majority of the TSPs for curriculum

development relies too heavily on the guidelines set out by HEC, PBTE and TEVTA. They

generally do not conduct any survey regarding industry needs for curriculum development and

up gradation. Independent committees within these TSPs (that are responsible for curriculum

development) review guidelines set out by these governing bodies and design curriculum

accordingly, without taking any initiative to develop curriculum based on industry requirement.

Uniformity across Institutes 5.5.7 Almost all respondents agree with the fact that there is uniformity in curriculum across

the institutes in Punjab for similar courses offered. The prime reason attributed to uniformity

was the fact that majority TSPs come under some common jurisdiction for example PBTE or

HEC, hence there is uniformity in course content for similar trades being offered.

TSPs & Industry Correlation 5.5.8 Most TSPs pointed out that they not only focus on the technical aspect of the syllabus

but also incorporate management, entrepreneurship and communication skills to prepare their

students for practical industry exposure.

5.5.9 Majority of TSPs also pointed out that they are actively involved in facilitating their

students to participate in various workshops and seminars (conducted by TSPs within/outside

their premises), in order to get deeper insights on industry practices. In their views the

curriculum taught is to great extent relevant to the industry practices and job market. However,

this is in contradiction with our findings from sector expert views stated in chapter 6, where

experts highlighted very low level of collaboration between TSPs and industry.

5.6 Affiliations/Partnerships 5.6.1 Majority of the TSPs (6 TSPs) have some local affiliations/partnerships with

Government, Public bodies, associations or private organizations. Out of the total respondents

surveyed, only two have partnerships/affiliations with foreign associations and industry

representatives (COTHM College and Bahauddin Zakariya University). When inquired from the

respondents if they were willing to acquire international affiliations, majority showed

reluctance, as the process is cumbersome and institutes lack operational and financial capacity

to qualify for the rigorous criteria.

5.6.2 The overall ‘affiliation/partnership’ profile of respondent institutes is attached

as Annexure 6.

5.7 Accreditation 5.7.1 Survey findings indicated that majority of the TSPs have accreditation with local or foreign universities. Both TSPs surveyed from the private sector also laid great emphasis on

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being accredited to some foreign entity as this enables to brand institutions amongst potential students. Most TSPs from the government sector have accreditation with HEC & PBTE. 5.7.2 It emerged from the survey that College of tourism & hotel management (COTHM) is the only institute which has accreditation from foreign governing bodies and entities as mentioned in below table. Rests of the TSPs have acquired accreditation from local governing bodies.

5.7.3 The current ‘accreditation profile’ of respondent institutes is also attached as Annexure(Annexure 7).

5.8 Recruitment of Training Staff

Selection of Teaching Staff

5.8.1 Majority of the respondents pointed out that selection of trainer is done by the senior board members comprising of individuals from various disciplines for example University Of Punjab’s selection board comprises 3-4 departmental heads, Vice Chancellor, Dean, 5-6 members of the public sector including; members from Ministry of Education, Ministry of Finance and Judiciary, bureaucrats, industry and area experts. University of Sargodha, Government College Technology Sahiwal, Islamia University of Bahawalpur, Arid Agriculture University Rawalpindi and Government College University Faisalabad also have selection boards in place to select trainers. TEVTA is mainly involved to select trainers for Government College of Technology, Faisalabad. 5.8.2 Private sector has no formal board for selection of training staff; hence recruitment is mainly done upon the need and nature of the position in question. Whenever need arises in these institutes, technical experts with relevant expertise for the position in question are summoned to interview and select trainers.

Selection Process

5.8.3 The selection process usually starts off by placing an advertisement in the newspaper, or receiving applicants through referrals, this is followed by a series of interviews, presentations and screening tests so that the committee can have a better understanding of the skill set of the candidate in question. Upon reviewing the candidate profile and assessing the candidate through interviews, the selection committee unanimously agrees on the trainer to be hired.

5.8.4 It has emerged from the survey findings that prior industry experience of a potential candidate for selection is not an underlying criterion for selection of trainers; however candidates who have industry experience are preferred over those who don’t have it. But at the same time particular emphasis is laid on hiring specialized trainers for technical subjects.

5.8.5 In addition to above few institutes like Star farms conducts in house research of local job market to review Job descriptions of training staff for similar positions and to ensure they hire the right candidate with right skills.

Training of Trainers

5.8.6 Government College University Faisalabad, NIFSAT agricultural Farms, Bahauddin Zakariya University, and Government College of Technology Sahiwal, employ a policy of pedagogy (teaching on how to teach). This strategy is used to train newly hired trainers so that they become more proficient in their work. Before they begin training, the teachers are given a

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comprehensive overview of the curriculum. This process gives a better understanding to the instructors as to what is required out of them and how to deliver the content to the students in a more structured manner. 5.8.7 TSPs also focus on the training and development of their instructors so that the skill sets of their instructors are developed with changing times and requirements of the industry. For example, University of Punjab is actively involved in conducting workshops and organizing training sessions, in-house and nationwide. Most respondents stated that they organize nationwide training and certifications for their faculty. It emerged that HEC is also involved in providing specialized trainings to trainers teaching technical subjects.

5.8.8 However, respondents mentioned low level of industry involvement in training their faculty. To address this issue, some universities summon graduates of certain institutes working in the industry, to give lectures or trainings to the teaching staff. Hence, it may be ascertained that TSPs to some extent are taking development initiatives to ensure trainers are at par with industry requirements.

5.8.9 Further it may also be ascertained from the survey, that there are no coherent policies in place for trainers’ selection as a result quality of trainers may vary across institutes.

Pay Scale and Career Development 5.8.10 The general trend observed across all government sector institutes is that is that pay scales are determined on the basis of seniority and experience of the instructor, regardless of their qualification. However, university of Punjab has an open merit competition system in which internal instructors have to compete with external candidates if required for any vacant position. They also provide favorable promotion avenues for their faculty. Similarly, Star Farm institute has a proper promotional scheme for their instructors which are developed by their senior management.

5.8.11 It has emerged from the survey that career development paths of the trainers is an area which is greatly neglected in majority of the TSPs. As indicated most TSPs from the government sector follow the conventional method of promotion which is based on seniority. However, this is not in accordance with the best market practice. Unfavorable promotion avenues may also lead to good trainers leaving the sector or highly de-motivated workforce.

5.9 Post Training Facilities/Placements for Graduates.

5.9.1 The survey results indicate that almost all institutes (excluding COTHM) provide post training facilities to their students. University of Punjab, Government College of Technology Faisalabad and Government College of Technology Sahiwal have placement offices that are solely dedicated to bridge the gap between students and industries, by providing internships and job opportunities. The placement department also ensures active participation of their students and graduates in job fairs and job expos where students are exposed to a larger set of employment opportunities. Survey results also indicated that majority of the graduates from TSPs do not join any institute as trainers; however, some students have signed up as trainers with various organizations in the food processing sector and have also been involved in the trainings of new interns from Food Sector TSPs.

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Skill Set of Trainees

5.9.2 When asked about the skill gaps of the TSPs’ trainees and the industry, some respondents stated that there are certain gaps which may be dealt with better collaboration and communication with the industry. For example, students have a very strong knowledge on the processes and technology of food processing sector. But when it comes to mass production, increased level of automation and control systems required in highly sophisticated production units, the models and makes of machines vary from industry to industry (mostly due to high competition between competitor production units). This creates a gap with regards to ‘industry harmonization’ between existing TSPs and food processing industry. TSPs are trying to deal with this problem by arranging regular internships for their students.

5.10 Plans for Expansion 5.10.1 Majority of the TSPs are satisfied with their existing facilities and infrastructure, however most of them pointed out there is room for further improvement. Most respondents stated that changing dynamics of the food processing sector requires them to continuously upgrade their equipment and labs, especially for technical subjects. 5.10.2 University of Punjab, Government College of Technology Sahiwal, Government College University Faisalabad and University of Sargodha, are mostly funded by provincial/local government along with some in house funds generated through students’ fee. Whereas the Islamia University of Bahawalpur, Government College of Technology Faisalabad and PMAS - Arid Agriculture University are solely funded by student fee and in house funds. Star Farms is funded by various donors and Metro MAS (Metro Assessment Service) Project. 5.10.3 The next 5 years’ expansion plans for various institutes are depicted below;

University of Punjab is planning to introduce more certificate & Diploma courses related to food technology, along with adding more disciples to the agriculture department.

Government College of Technology Sahiwal, University of Sargodha and PMAS Arid Agriculture University are planning to increase their seats due to high courses’ demands in the market and at the same time planning to expand their labs and other practical facilities for further improvement.

Star Farms is working to launch their institute in KPK and Sindh, along with adding more courses to their curriculum.

5.10.4 It has also been reported that most TSPs are relying on government funding to assist them with their expansion plans whereas some are planning expansions through their own funding and continued funding support from their donors (e.g. Star Farms). .

5.11 Awareness of PSDF 5.11.1 Out of the twelve TSPs surveyed for the purpose of this study, only five TSPs had prior knowledge about PSDF, its role, mission and responsibilities. One TSP, Star Farm Institute, also pointed out that they are currently working with PSDF and are very impressed with their monitoring system. Out of these five respondents only three are aware of PSDFs funding structure.

5.11.2 Respondents were also asked to give recommendations and suggestions to PSDF as an organization. Majority of the respondents suggested the following;

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PSDF may also facilitate TSPs to enhance their trainer’s skills by financing training programs so that skill gap between the industry and the TSPs may be identified and addressed accordingly.

The organization can also provide financial assistance in carrying out research for curriculum development by collaborating with industry and foreign universities.

Make efforts to market PSDF more, and reinforce awareness of their purpose and existence amongst TSPs so that more institutes are able to reach out to them for assistance and guidance.

PSDF can play active role in helping TSPs to carry out their expansion plans in terms of capacity building and infrastructure development. Different financial schemes may be introduced to cater to the scope of expansion plan.

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6. Detailed Findings – Sector Experts

6.1 Introduction

6.1.1 In-depth interviews and discussions with business experts across Punjab were conducted as part of the exercise covering review of ‘skills training needs’ within the food processing sector. This chapter summarizes insights and views expressed by these sector experts regarding;

Skill needs, Skill gaps, Their feedback on relevance and quality of courses, and Effectiveness of Training Service Providers (TSPs) Global food processing sector scenario Current consumer demand in the international market Major challenges being faced by the sector etc.

Sector Experts Profile 6.1.2 SHMA identified 36 sector experts who are actively engaged in the processed food industry in Pakistan. These were shared with the client and confirmed prior to soliciting their inputs.

6.1.3 In the ‘processed food’ category we obtained viewpoints from 24 experts on frozen food including value added processed food and fruits, vegetables, edible oil and beverages. The remaining 12 experts were related to bakery and confectionery sub-segment including general bakery products, biscuits and other dry bakery and confectionery products. The sector experts were chosen on the basis of their academic qualifications, areas of expertise and years of experience in their respective sector. Majority of the respondents had Masters Degrees in food sector and work experience in the industry ranging between 10 to 15 years, while a few of the respondents had higher qualification such as PhDs in food sector related disciplines with more than 25 years of experience in the industry. Their main areas of expertise was related to; Food Technology, Extrusion Processing, Thermal Food Processing, fruit and vegetable sector, edible coating, sustainable production, food micro technology etc.

6.2 Food Processing Industry - Global Perspective 6.2.1 The respondents expressed the view that the global food industry has evolved rapidly over the past 5 years and with active involvement of internet, blogging and social media in our lives, more people are now aware of food and nutrition. The experts also highlighted the fact that in developed markets, like US and Europe, the consumption trend is slightly shifting from processed food to organic food. However in Pakistan the processed food sector has just started to flourish and it has a long way to go in terms of development. 6.2.2 While discussing about the trends and innovations of global processed food industry, the majority of the respondents believe that the global processed food industry depends more on automation and control systems in their production facility in order to meet high consumer demand. Countries like USA and Germany are known to the world as innovators and vendors of automated machinery to this sector. Many developed countries around the globe have installed technology and machinery from these countries and have managed to achieve high levels of production efficiencies. The experts further emphasized the fact that USA and Germany have heavily invested in innovative machine designs and in reducing labor intervention throughout

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the processed food sector and it has helped them to a great extent in translating productivity gains into high profits for the food processing sector.

6.2.3 With regard to Asia, experts are of the opinion that China and Japan are the biggest markets that are very much developed and have greater potential for development followed by India and Oceana countries especially Malaysia. Apart from Japan which is very much into research and development, automation and in designing of innovative technology relevant to food sector, the rest of the region’s main strength lies in replicating the European and American systems with utmost excellence. They are quite adept at implementing the western systems into their own factories and for this reason there is currently and will be in future - major exports of technology from countries like Germany and USA into these Asian countries, which is a major threat for entire region especially for Japan. The Pakistani processed food industry also relies heavily on USA and Germany in terms of technology import. As indicated by majority of the food sector experts, Food industry in Pakistan is shifting towards more automated systems and Pakistani Processed Food Sector will be a high potential market for technology export especially from China, Japan, USA and Germany. 6.2.4 When asked about the recent technological developments in the sector, ‘technological advancements with respect to traceability’ was highlighted by the experts. Recently, there have been developments in the sector because of which one can identify the actual components and their percentage in food product. Industries can now determine the actual parentage of the animal and its health as well. The traceability system allows checking for impurities in a product and even trace the feed of animals to see whether it contains harmful material or not, as they can enter into the human body from the food product if the animal has consumed these harmful substances in feed. Few other experts also talked in the same context, but with reference to hygiene factors and said that there are systems available which tracks the hygiene of the workers in factories. They also talked about increasing the shelf life of the product, which increases productivity and overall revenue for the company. There is a lot of awareness amongst global food technologists due to their recent trainings and advancement in technology. For example, automated hands free systems of packaging make the end product standardized by reducing human error and increasing the shelf life of the product. 6.2.5 Contrary to the aforementioned views of experts, there is another school of thought amongst the respondents which states that the global food processing industry is still not fully automated. According to them, currently, there are systems present which require human interventions; hence it may be safe to assume that the sector has shifted to great extent from ‘semi- automated’ operations to ‘fully automated’ globally but still not ‘fully automated’.

6.2.6 As far as human resource requirement is concerned, almost all the experts strongly believe that the developed world does not generally face the problem of finding people related to human resources. They actually have institutes dedicated to training people in specific industries including food sector. Apart from the institutes they also have very advance ‘on-job training ‘system and most of the staff gets proper training and internships before coming to the factories. Hence one of the main reasons of their success is attributed to the presence and availability of skilled staff. Further the sector experts during this discussion heavily emphasized on the ‘needs of trainings’ for the food processing workforce in Pakistan. 6.2.7 Moreover, the respondents also stressed upon the fact that the global industry has started working on acquiring specialized skill set. This cannot happen in Pakistan because of the rigid management structure of the industry. They believe that there is a dire need for specialized skill set spread over a larger number of workforce in Pakistan. The local industry also needs multi skilled people for small scale operations.

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6.2.8 When asked about the issues with global food sector, almost all the respondents agree to the fact that it is very difficult to evaluate issues with global food industry. However, an issue has been raised recently that there is likely to be an "explosive growth" in the use of the technology in advanced countries. Also nanotechnology is likely to be employed to enhance flavor and even to make processed foods healthier by reducing the amount of fat and salt needed in production. Experts believe that there are risks associated with processed food, if prepared by nanotechnology, as the use of chemical sprays like insecticides and pesticides on fruits and vegetables may lead to producing harmful or contaminated process food products. 6.3 Food Processing Industry in Pakistan 6.3.1 In views of the respondents, Pakistan’s Processed Food industry has come a long way and is beginning to gear up to compete in the international market especially in the Middle East where there is a huge demand for the Halal Processed and certified Products. Major industry players are focusing on maximizing cost advantages and taking advantage of access to markets that are hitherto not available. Experts are also of opinion that the sector is gradually shifting towards automation to increase efficiencies and to meet rising local and export demands.

6.3.2 The industry experts identified various challenges and opportunities this sector facing in terms of both technology and human resources. Some of the major challenges are depicted below;

Shortage of skilled labor, Shortage of institutions providing sector specific trainings, Lack of research and development in the sector, Low wages, limitations of labor rights and labor laws violation, Inflation, Law and order situation, The current energy crisis, Weak Agriculture infrastructure, and Lack of technological advancements, process and quality initiatives in the sector.

6.3.3 In addition to the above, Pakistan has the highest sales tax rate as compared to other neighboring countries. The respondents feel that high sales tax hampers competitive pricing which is a challenge for the producers. .

6.3.4 Further in views of respondents, Implementation of international standards is also a challenge that is posing threats to exports. For example, exports of some Agro-Commodities like Plant Quarantine is suffering since local processed food industry is not completely meeting the requirements of International Food and Safety regulations. In addition to this, Pakistan still has to meet certain international standards in regards to quality control and food safety.

6.3.5 Moreover, almost all experts agree with the fact that the lack of skilled work force and technological advancements are the main reasons because of which Pakistan is lagging behind in competing internationally. Survey experts specifically highlight sugar confectionery sector as one that really needs food technologists to ensure safe and healthy products for children. Similarly in their opinion frozen food and edible oils are the sub-sectors where advancements in terms of automation and large number of skilled workforce are required. 6.3.6 Besides various challenges, several improvements are also spotted by the survey experts such as Improvements in; exports of fresh and value added fruits and vegetables and Halal value added food products, and developments in technological advancements especially in

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the fields of food preservation, post-harvest engineering, packaging and supply chain and storage.

6.3.7 One of the respondents suggested the use of ‘refrigerated containers’, during transport of fruit from farm to factory, as an opportunity to increase efficiency of our fresh fruit and vegetable sector. India is already using this technology through which the fruit is picked from the farm in raw shape and the transportation to factory is done using temperature controlled refrigerated containers. This way the fruits and vegetables reach the factory in same quality as of naturally ripe product.

Technological Advancements Expected in Near Future 6.3.8 Majority of the experts were of the view that the following technological advancements are expected in near future;

IT technology is likely to play a vital role in food processing industry and may trigger

demand for IT professionals in the Industry. Establishments of well-equipped labs for product testing may also increase. These developments would require the availability of micro biologists and food chemists.

High level of technological advancement with respect to food preservation is also

highlighted by the participants. They believe that almost all companies; nationals, multinationals, registered, unregistered, are looking for increased shelf life of their products by adding safe and healthy food preservatives. This factor would offer promising career opportunities to those with education in food preservation technology.

6.3.9 Despite the aforementioned views on future technological advancements, some participants are also of the opinion that there will be no advancements in near future. The prime reasons cited in support of this viewpoint were the associated cost implications and the current economic and political situation of the country, which is discouraging industrialists to incur this cost at the moment.

6.3.10 Further, respondents cautioned that Industrial and technological advancements may lead to flourishing businesses but these will require professional and skilled workforce. So one of the major challenges for industrialists in future will be “to attract and retain workforce” and for that industrialists will have to develop professional HR policies. Development of human resource through training is also highlighted as of prime importance in future by the experts.

6.4 Food Processing- Skills Required and Skills Gaps

6.4.1 Majority of the respondents agree with the fact that the employees with desired skill set level are not readily available in the market. The industry faces problems in finding people, who are specialized in technical fields like, food technologist, food planners, food quality control, microbiologist, biochemist, machine operations, electrical engineering, electronic engineering, and people who can work on boilers, seeding plants, crushing etc. It takes 2-3 years for a person to learn the processes properly and to deliver results. However this view is contrary to the views of TSPs, who believe that their graduates have the technical skill set, needed for food processing industry.

6.4.2 Almost all the respondents contacted for the study highlighted training, both at formal and informal level as the main cause of the skills-gaps at various levels. They are of opinion that due to a lack of training institutes/ courses almost all the players in the market depend on ‘on-

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the–job/in-house training’. Industry players mostly hire unskilled workers and train them. Experts also believe that both the industry and training institutes can play a vital role in bridging the gap, if they work in close relationship with each other. 6.4.3 Further the sector experts are of the opinion that demand for skilled work force in the processed food industry of Pakistan will rise in the next 5 years mainly due to industry awareness about the food processing sector, new product manufacturing, shift of industry towards automation and automated production plants. 6.4.4 Majority of the respondents do not feel that the industry is doing enough to fill the gap that may create in future due to this anticipated increase in demand. Only individual efforts are being conducted by some large scale companies as there are budget constraints too. For example, Tetra Pak conducts off-the-job trainings mainly for machine operations with a consulting firm. Also multinationals offer formal off the job and on the job trainings to their employees due to their experience and budgets, and their training programs are also up to the required industry standards. Experts also highlight that companies which do not have resources to train employees, prefer hiring experienced employees and face constant exploitation at the hands of experienced employees.

6.5 Hard to Fill Vacancies 6.5.1 Table below depicts the information retrieved from the sector experts’ interviews regarding vacancies for which; establishments are unable to find suitable candidates, medium to long term, at prevailing wages, and through the usual recruitment procedures (Hard to fill vacancies). Further the main reasons due to which experts believe these vacancies are hard to fill are also highlighted in table below;

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TABLE 48: HARD TO FILL VACANCIES

Hard to fill Vacancies Reasons

1. Food Technologist

Students are not trained about Food Standards and the Food Authority Act. Even if they are trained on few relevant things, they are completely out dated.

There is a need for developing manpower in specialized skills. The industry is not working in this regard at all.

2. Quality Assurance Specialists

There is no perception regarding HACCP (Hazard Analysis and Critical Control Points), food safety and quality in the market

Lack of practical training at the institutes

3. Technical work & machine operator (holding at least a diploma)

Turnover for such employees is high. People are not trained for working on filling machines,

washers, cappers, reverse osmosis and packing machines etc. In training institutes. Factories have to train them from scratch after hiring.

Companies can hire fresh employees and train them on their system but it will take about a year to make that person productive

Lack of practical training at the institutes /hands on exposure to a variety of material and tools

4. Sales team

Sales employees switch frequently when they are offered more money.

Companies facing problems in finding employees who know the industry and is already trained.

5. Research & Development Specialist There is very less aptitude and attitude towards

research along with business experience. Lack of training facilities

1. 6. Advanced IT professionals Relevant ICT skills shortage Turnover for such people is high. Lack of training facilities

8. Bio Technology specialist

Lack of knowledge in Bio Technology Lack of training facilities Lack of theoretical and practical training at the

institutes

Role of Labor Intermediaries 6.5.2 The study has found out that most companies in Pakistan don’t use intermediaries or labor contractors for hiring or filling hard to fill vacancies; this has also come out from the quantitative/demand survey of 185 establishments 72F

73. They prefer recruiting people who are skilled or qualified directly through newspaper. Though labor contractors do provide people with required skills but sector experts are of the opinion that their supplied work force is not always up to the requirements may be due to lack of technical recruiters.

6.5.3 Experts also pointed out that majority of work force which comes from the labor intermediaries or contractors have serious issues in adjusting to company environment. Experts believe that finding a skilled individual with the required qualifications through mediums like newspapers, advertisement on factory gate etc. is not that difficult but to find people with right attitude is a challenging task as majority of the workforce (supplied by labor intermediaries) is

73Figure 15, section 4.4.1 in chapter 4

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only focused towards completing their day to day tasks without paying any heed to quality or taking any personal development initiatives. 6.6 On- the – Job Training (OJTS) 6.6.1 In view of experts, educational institutes only impart the conceptual knowledge regarding a particular subject matter while practical implementation is often neglected; therefore to deal with this situation ‘on the job training’ is vital for practical knowledge. This section of the chapter discusses those skills, for which on-the-job training is best suited, and the role that industry players have played, in providing on the job trainings to employees and recent graduates. 6.6.2 According to the majority of our respondents, following skills (in existing and newly hired employees)require on the job trainings;

TABLE 49:SKILLS REQUIRE ON THE JOB TRAINING

Mechanical Work and Machine operations at the plant

Food technologist

Health safety standards Food Chemist

Food preservation Bio technology

Food Grading Cooking and Frying

Food Tasting Plant and Machine repairing and maintenance

Basic Hand tools skill Hygiene Conditions at plant

Food safety standards

6.6.3 The experts believe that the above mentioned skills require on-the-job trainings because the factory environment is different from classroom environment; hence these skills require in-depth understanding of operations. Further, on-the-job training helps organizations to train their employees to specific requirements. 6.6.4 The respondents specifically highlight that ‘machine operating skills’ are most suitable for on-the-job trainings. Other skills can be learnt from training centers to some extent but machine operations can be best learnt on the machines and equipment, because machines like frying and cooking in the factory involve tackling quantity, temperature and timings which can only be practically taught in the factory. Further trainings for majority of the technical skills like Food Technology, Food Hygiene, Health and Safety and Food Safety, Mechanical Work and Machine Operation, etc. must be provided on the job. 6.6.5 When asked about the role industry players have in providing on-the-job trainings, experts are of the opinion that industry players are well aware of the importance of providing on-the-job trainings to their employees as the current influx of labor is not skilled to perform operations efficiently on advanced and more sophisticated industry equipment. Hence majority of the medium sized and large scale companies hire people and train them as per their requirements. It has been observed (in views of experts), that mostly, large organizations and multinationals train their people recurrently to keep up with the industry requirements. Hence their employees’ turnover is also less compared to the small factories. Though smaller factories also provide trainings to their employees, but they mostly prefer to hire someone who is already trained due to lack of technical and financial resources.

6.6.6 When asked whether the industry is willing to provide trainings to fresh graduates of TSPs especially on production aspects; in order to provide deeper understanding of the plant operations to them, Interviews’ results indicate that the industry especially major players are willing to provide such trainings. However medium and small scale companies have limitations

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like; lack of financial resources or adequate time and manpower to train fresh graduates. Some of the main skills highlighted by sector experts for which the companies are willing to provide trainings to fresh graduates are as follows:

Food Chemistry & Physical properties of food. Computer operations at plant. Plant/Machine repair & Maintenance Food preservation Food Quality Assurance

6.6.7 Respondents also suggest that OJTs which food industries providing to graduates must be formal trainings and students should be given proper practical assignments and tasks instead of just assigning them general office works and administration tasks they should be allowed spending more time on production floor. Similarly during internships students are mostly trained on machine repair and machine process but experts believe that apart from these skills students should also be trained on production planning and control aspects.

6.7 Off-the-Job Training 6.7.1 It has emerged from the qualitative survey that very few companies provide off the job training to their employees as they do not notice any operational value for these trainings. Of the few companies in views of experts which provide or send their employees for off the job trainings, most of them send their employees for soft skills’ trainings.

6.7.2 Majority of the respondents highlighted following skills for which they think off the job training is best suited:

TABLE 50:SKILLS REQUIRED OFF THE JOB TRAINING

Time management Sales management

Problem Solving Food Technologist

Bio Technology Management Skills

Food Preservation Leadership Skills

Quality Assurance/Quality Control Health and Safety Standards

6.7.3 Subsequent to providing aforementioned skills’ trainings, there are instances when new machinery is installed in the factory and in order to familiarize employees to its operations, off the job trainings are often provided or arranged by the manufacturers of the new machinery for employees. And sometimes our local industries even send their employees abroad for these off the job trainings. 6.7.4 Experts also indicate several large scale companies, which are providing off the job training facilities to their employees for example, Fauji Foundation has set up separate camps to provide off the job trainings pertaining to their required skill set, multinationals have already an existing in-house formal set-up for such trainings. Besides this numerous training options are also available for other companies thinking of providing off the job trainings to their employees in form of agriculture and food sciences universities, institutes like Star Farms and Pakistan Institute of Management; which conducts trainings for soft skills, technical and supervisory skills in close liaison with the food industries. 6.7.5 As far as the quality of these off the job trainings is concerned, majority of the experts are of the opinion that for soft skills training material are adequately prepared and are up to the standards, whereas for technical trainings available training materials are not up to the standards or requirements of the sector.

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6.7.6 Some recommendations and suggestions provided by the experts for improvement of the trainings administered are:

Institutes administering training for employees must have strong collaboration with the industry and should conduct regular research so that skill gap may be easily addressed and more meaningful technical training for employees can be formulated.

Industries should take initiatives at individual levels to provide technical knowledge to their employees.

Impact assessments must also be done to determine the outcomes of a particular training program.

6.8 Technical and Vocational Education (TVE) in the Food Processing Sector

6.8.1 The table below represents the skills in views of the experts for which they believe technical and vocational trainings are required;

TABLE 51: SKILLS THAT REQUIRE TECHNICAL AND VOCATIONAL TRAININGS

Food chemistry Post-harvest engineering

Physical properties of Food Materials Advance Technology

Hazard Analysis and Critical Control Points (HACCP) Merchandising, Food Processing Retail

Quality Assurance/ Control Minor Machine Maintenance /Repair

High yield crop management Costing /Basic Accounting

Food Technology Material and energy balance

Canning Food quality control

Food safety Food processing and preservation

Food Preservation Food micro biology

Basic Operational safety Food product and plant design

Hygiene conditions at plant Food packaging

Awareness of integrated practices Agricultural processing engineering

Biochemistry Product Development

Microbiology Resource management

Application of quality management Stress Management

6.8.2 According to the majority of experts, there has been a slight change in the availability of training options/programs in the food processing sector. They believe that there is a huge demand of training required in the technical section of the industry which involves operating, maintaining and repairing machinery, food technology, food chemistry, food preservation, as well as know-how of the health and safety standards required in the production process. In addition to technological and mechanical understanding of machine operations, TVE is also required at the quality control level to ensure quality of products and procedures. Some experts also propose the development of more short and diploma level courses where improved practical trainings are provided in aforementioned areas along with relevant theoretical background, to gear the individual with the required skill set before entering the industry.

Training Service Providers in Punjab 6.8.3 Below is the list of various TSPs identified by our qualitative survey respondents in Punjab, which in their opinion providing programs/trainings on skills related to food processing industry.

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1. University of Agriculture Faisalabad 2. The University of Faisalabad 3. University of Punjab 4. Government college of technology Faisalabad 5. Government college of technology Sahiwal 6. University of Engineering and Technology Lahore 7. University of Sargodha 8. Bahauddin Zakariya University Multan 9. The Islamia University of Bahawalpur 10. PMAS – Arid Agriculture University Rawalpindi

Correlation between TSPs and Industry

6.8.4 Majority of the survey experts affirm that they do not receive any information about the food processing training courses from universities or technical and vocational institutes. The experts are of the opinion that it is high time TSPs and industry representatives should start collaborating with each other so that the courses could be designed and delivered according to the industry requirements. 6.8.5 Further when survey experts are asked whether companies in food processing sector prefer to hire employees of these TSPs more than half of the experts affirm that the job prospects are high for those doing certifications or degree courses relevant to food processing sector. Experts rated University of Agriculture Faisalabad at top with regards to job prospects, followed by Bahauddin Zakariya University and Islamia University Bahawalpur. 6.8.6 When questioned about the relevancy of the curriculum with the requirements of the industry, the experts unanimously agree with the fact that although the material being taught is good theoretically, but it does not have any practical application for the students. Therefore, the institutes should design their curriculum in collaboration with industry in such a manner where major part of the training should be practical and applicative in nature. Moreover, experts also believe that the curriculum should be upgraded regularly in order to meet the current requirements of the industry.

Level of Involvement with TSPS 6.8.7 The graph below shows the views of experts with regards to the level of involvement of ‘survey experts’ and ‘industry’ (as a whole) with the TSPs. Most of the experts are of the opinion that industry representatives are to some extent involved with TSPs mostly in identifying skills/trades (18 out of 36 experts agreed) relevant to food processing, followed by selection and recruitment of teachers and curricula development. But they believe that more work is needed in strengthening the relationship between TSPs and industry.

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FIGURE 25: LEVEL OF INVOLVEMENT (MULTIPLE RESPONSES-36 RESPONDENTS)

6.9 Awareness of PSDF

6.9.1 Majority of the experts are unaware about PSDF and its role in Punjab. Only few are aware about PSDF (less than 10%) as they have some acquaintance or have worked with that organization. As the majority of the respondents were completely unaware of PSDF’s role and responsibilities, our consultants shared information regarding PSDF and its various initiatives for several industries including the food processing industry. This information was generally well received by the respondents and they reverted with the following opinions/suggestions on how PSDF can help the industry;

PSDF can help the industry by strengthening the existing TSPs so they could develop more and updated (as per industry requirement) technical trainings. These institutes can then provide certifications for various required skills in the market.

Collaboration between industry and TSPs is main issue; PSDF can help institutes to conduct seminars and programs where industry and TSPs can share knowledge and can effectively increase collaborations.

PSDF can support TSPs to provide on field trainings to employees, as it is difficult for employees to take out time from their usual working hours.

PSDF can also provide avenues to take the multinational and large size companies on board for conducting training activities; and through these avenues TSPs may send their students to these companies’ in-house training facilities or factories. This should be a course of 1-1.5 years. Organizations like Lever Brothers, Knorr, Rafhan, K&N, and Nestle must be considered. Students can be sent to their facilities not just for lectures but on manufacturing floor for practical trainings.

PSDF must take steps to inform organizations about their initiatives. They need more visibility and proper marketing plan to reach out to target audience/market.

PSDF can involve or work closely with institutions like PCSIR & PITAC which are actually capable of delivering what the industry requires.

0% 10% 20% 30% 40% 50%

Identifying Skills /Trades

Curricula Development

Examination /Assessment

Formulation Of Policies

Selection And Recruitment Process Of Teachers

Training Of Trainers

Assessment Of Trainers

50%

28%

19%

19%

28%

25%

19%

11%

6%

3%

0%

3%

6%

0%

Respondent’s Involvement Industry involvement

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6.10 Government Sector 6.10.1 According to majority of industry experts, Pakistani food processing industry is a sleeping giant 73F

74 and government initiatives will definitely encourage the rapid growth in this sector. In views of the experts the Government may take the following key measures and policy interventions for continued growth and development of the sector and increase in exports;

Income tax rebate may be allowed for new industries in fruits and vegetables besides institutional and credit support.

In a bid to boost the food sector, the Government may setup mega “Food Parks” which would cover the entire food processing cycle, from the farm gate to the retail outlet.

Approvals may be provided for setting up Technology Transfer Centers (TTCs).

6.10.2 The Survey experts also highlighted that there are associations like Punjab Food Authority, TDAP, etc. working actively for the growth and development of this sector. Hence, it will be of great importance for the sector that the government starts working on long term plans with these organizations instead of short term goals.

6.10.3 The respondents also indicated that the Government can assist in overcoming the current shortage of training and skills in one of the following ways;

Public/ Private Partnership to support the technical education.

Government can allocate investments through which TSPs may; send experienced trainers abroad to do Masters/PHDs, build new test labs and improve infrastructure facilities.

The Government can make sector focused policies considering the current & future needs and to manage the shortage of skilled workforce.

74In-depth interview with SGS and TDAP

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7. Summary of Key Findings

7.1 Introduction

7.1.1 The food processing industry in Pakistan has shown great advancement during the last decade, becoming one of the major industries as new players continuously enter the market. Seasoned players have expanded their product/brand portfolio by introducing new product lines and making extensions in the existing ones. A large number of products that were being imported are now being produced locally.

7.1.2 As competitive pressures have increased, new technologies are replacing existing technologies and processes, the industry is compelled to upgrade and enhance the skill level of their manpower. 7.1.3 Further, with the expansion of food processing sectors, skills’ requirements within each sub-sector have changed as well. There are needs for technical and vocational skills even in the traditional sector such as ethnic confectionery, sweets and other processed food (e.g. mithai, nimco, achar) as producers have adopted more modern techniques of production.

7.2 Key Findings of Study

7.2.1 The key findings highlighted below are based on the results obtained from the qualitative and quantitative surveys (187 establishments’ Quantitative surveys, 36 in-depth interviews with the sector experts, 12 in-depth interviews with training service providers) along with the data collected through secondary research and these are summarized as follows:

Work-Force Characteristics

7.2.2 The workforce in food processing industry is dominated by unskilled male workers with low education level and mostly involved in performing mechanical tasks. The majority of the workforce is working in the category of ‘other skilled workers and elementary occupations’ while approximately 30-35% cumulatively working as ‘technicians’ and ‘associate professionals of food’, managers, craft and related trade workers and plant/machine operators 74F

75. The overall turnover rate of the employees at middle management level (including technicians) and workers level is low(0%-10%).

Skills Analysis-Skills Required and Skills Gaps

7.2.3 Survey results indicate a scarce supply of skilled and precision 75F

76workers across all sub-sectors under study. As the level of technology is expected to increase, the demand for these workers is also expected to rise in future76F

77. 7.2.4 It has emerged that the minimum skill requirement includes some academic and vocational qualifications, personal skills, mechanical/technical skills and practical experience. Mostly the large

75Extraction: ISCO- 2008 76Precision workers in food processing sector are those who perform technical/machining operations with the degree of refinement with which an operation should be performed 77See ‘Demand Projections’ section below, Section 7.3.

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sized organizations look for specialized skills, whereas informal sectors prefer multi-skilled workers77F

78. 7.2.5 A wide range of skills required by food processing operatives were identified during survey exercise. The key skills required along with identified skills-gaps, measures taken to fill these gaps, available training options for skill building, are summarized in the Table 56 and are attached at the end of this chapter. Key highlights are as follows:

The study indicated a need for skill building at all levels in production units across all segments under study. Skills requirements fall under two major groups; i.e.

a) Those performing routine tasks at elementary level, plant/machine operators and craft workers with specialized skills, and b) Skills related to technical expertise in food processing and preservation, quality assurance, research and development, maintenance engineering and are also reported as hard-to-find.

It has been established that most preferred method of training in views of most of respondents is on-the-job training. A variety of methods are employed to provide

OJT to staff, such as close observation training and working under direct supervision being the most commonly utilized methods.

The formal training options related to food processing sub- sectors under study are generally advanced level programs being offered at universities in Punjab, leading to Bachelors and Master’s Degree in Food Science and Food Technology. Some universities are offering Ph.D. in Food Science and Technology as well. Short Term Courses, though minimal, are also available with some universities in the following areas of technical training;

Food Preservation skills

Plant and machine operating and maintaining skills

Food Quality assurance/ quality control skills

Baking Skills


7.2.6 Though there is a strong presence of technical and vocational training centers of more than 700 institutes 78F

79(both from public and private sector) across Punjab, the training options in the desired skills are minimal. Further, off- the- job/offsite training options are limited to employees of large sized organizations working at senior levels

Intentions to set-up In House Training Facility

7.2.7 Results indicate that majority of the food processing companies (regardless of their company size) have no intentions of setting up in house training facilities, however a very small percentage seemed open to the idea of such training centers in their premises, if financed or set up by any other organization.

78Findings of in-depth interviews with sector experts 79Data retrieved from: http://www.navttc.org/TVET_Pakistan.aspx

http://www.navttc.org/TVET_Pakistan.aspx

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Awareness of PSDF

7.2.8 Majority of the industries and experts are completely unaware about PSDF and its role in Punjab. Only few are aware of PSDF as they have some acquaintance or have worked with the organization before.

7.3 Demand Projections (2015-2020) for Trainings in the Food Processing Sector 7.3.1 In order to determine estimations of demand for training for the food processing sector it was first necessary to estimate the total demand for training as of 2015. As a first step towards estimating demand, the results of the survey (qualitative and quantitative survey findings) were referenced and a list drawn of the top most requested training courses. These courses were then categorized under; Core and Non Sector-Specific Skills and Sector Specific Skills. The list of top most requested training courses is given below for reference:

CORE AND NON SECTOR-SPECIFIC SKILLS Managerial and Administrative Skills Communication Skills Problem Solving Skills Numeracy Skills Food Technologist/ Bio technologist Food Preservation expert Food Quality Assurance/Quality Control Plant and Machine Operating and repairing Skills

SECTOR SPECIFIC SKILLS 79F

80

Value added and frozen food processing

Cooking and Frying techniques Food Preservation techniques Food Tasting and Food Grading Skills Visual Examination for Quality Product/ Sorting /Grading


Technical knowledge of the products Oil expeller operating skills

Beverage Production

Bottling Skills Transportation skills


Baking Skills Pastry Cooking Skills Chocolate Making Skills Biscuits Dough and Batter making Skills

80Based on qualitative and quantitative survey findings and results of Annexure 15- Skills requirements and training needs, above)

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7.3.2 The food processing sector in Punjab (except primary processed food) employs an estimated 210,142 people over 1928 units (2014-2015 data). The distribution of units by sub-sector and their employment figures are presented in table below:

TABLE 52: EMPLOYMENT IN FOOD PROCESSING SECTOR 80F

81

Sub-sector No. of units Estimated Employment

Value added and frozen food 1,121 125,236

Edible Oils and Fats 120 12,736

Beverage Production 97 10,613

Bakery and Confectionery 590 61,557

Total 1,928 210,142

7.3.3 The next step in estimating demand was to project the growth of the food processing sector. As per the Economic Survey of Pakistan 2010-2013 and results from Bureau of Statistics (also mentioned in chapter 3), the food processing sector as a whole is currently growing @CAGR of 5.75%p.a. during the last four years’ period. We have assumed that generally this growth rate will result in a corresponding increment in labor deployment over coming years. However, based on the qualitative findings mentioned in chapter 6 and secondary research conducted for this study, the growth rate is expected to be stable for the next three to four years, as during this time the industry will be implementing or installing new technology and automated machines during this period. From 2019 onwards, the growth rate in employment will start decreasing due to increasing automation in the sector81F

82. 7.3.4 Based on our primary and secondary research we have assumed the following growth rates by size for each sub-sector (the basis for assuming these growth rates is also mentioned):

Value added and frozen food - 7%(as per Economic Survey of Pakistan 2010-2013 and results from Bureau of Statistics, this subsector is currently growing at CAGR of 6.5-7.5%)

Edible Oils and Fats - 4%(Based on the estimations provided by Pakistan Oil Seed Development Board)

Beverage Production - 4%( Section 3.5.3, Chapter 3)

Bakery and Confectionery - 6%(Section 3.6.1, Bakery and Confectionery, Chapter 3)

7.3.5 Based on the above average growth rates for each sub sector, expected increasing level of automation in the sector and average CAGR of the entire food processing sector, employment projections were calculated using 2015 employment figures for each subsector. This exercise is mentioned in the demand grid ‘Table 55” below. Basically the above mentioned growth rates were applied to 2015 employment figures (Table 52 above) for each sub sector to attain 2016 (next year’s) estimated employment figures and so on(till 2018). The growth rates for 2019 will be slightly different (due to increasing level of automation in the sector, as elucidated above) and are assumed as follows;

81Ibid 52 82Economic Survey of Pakistan 2010-2013,results from Bureau of Statistics and views of industry experts gathered through qualitative survey

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Value added and frozen food – 6.5%

Edible Oils and Fats – 3.5%

Beverage Production – 3.5%

Bakery and Confectionery – 4.5%

7.3.6 The pattern of employment within each sub-sector as determined from the quantitative survey is as under:

TABLE 53: PATTERN OF EMPLOYMENT

Employment Cadre Percent of total workforce

Management 4% Supervisory 6% Skilled Labor 48% Unskilled Labor 42%

7.3.7 Using the above estimations (estimations from table 52 and table 53 above) it is possible to profile employment by size across the four management cadres as follows;

TABLE 54: EMPLOYMENT BY MANAGEMENT CADRE

Value added and frozen food


Beverage Production


Management 5,009 509 425 2,462

Supervisory 7,514 764 637 3,693

Skilled Labor 60,113 6,113 5,094 29,547

Unskilled Labor

52,599 5,349 4,457 25,854

7.3.8 With labor distributions, growth rates in employment and with trainings’/skills requirements emerging from the survey 82F

83, it is possible to project the training needs of the food processing sub-sectors till 2019, and these are presented in table below.

83Chapter 4, Tables; 39, 42 and 44

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TABLE 55: DEMAND PROJECTIONS FOR TRAINING IN FOOD PROCESSING SECTOR

Category Courses 201583F

84 2016 2017 2018 2019

VAF EO BP B&C VAF EO BP B&C VAF EO BP B&C VAF EO BP B&C VAF EO BP B&C

Core and Non Sector-Specific Skills

Managerial and Administrative Skills

5,009 509 318 2,462 5,360 662 331 2,585 5,735 689 344 2,715 6,137 716 358 2,850 6536 741 371 2979

Communication Skills

3,757

4,020 - - - 4,301 - - - 4,603 - - - 4902 - - -


318

- - 331 - - - 344 - - - 358 - - - 371 -

Numeracy Skills 3,757 637

1,847 4,020 530 - 1,939 4,301 551 - 2,036 4,603 573 - 2,138 4902 593 - 2234

Food Technologist/ Bio technologist

10,019

7,387 10,720 - - 7,756 11,471 - - 8,144 12,274 - - 8,551 13,071 - - 8,936

Food Preservation expert

7,514

3,693 8,040 - - 3,878 8,603 - - 4,072 9,205 - - 4,276 9,804 - - 4,684

Food Quality Assurance/Quality Control

7,514 2,292 849 3,693 8,040 2,384 883 3,878 8,603 2,480 918 4,072 9,205 2,579 955 4,276 9,804 2,699 988 4,468

Plant and Machine Operating and repairing Skills

12,524 2,675 1,698 6,156 13,400 2,782 1,766 6,463 14,338 2,893 1,837 6,787 15,342 3,008 1,910 7,126 16,339 3,114 1,977 7,477

Sector Specific

Skills

Value added and frozen food processing


28,804 - - - 30,821 - - - 32,978 - - - 35,286 - - - 37,580 - - -

Food Preservation techniques

17,533 - - - 18,760 - - - 20,074 - - - 21,478 - - - 22,875 - - -

Food Tasting and Food Grading Skills

13,776 - - - 14,740 - - - 15,772 - - - 16,876 - - - 17,973 - - -

Visual Examination for Quality Product/ Sorting /Grading

15,028 - - - 16,080 - - - 17,206 - - - 18,410 - - - 19,607 - - -


Technical knowledge of the products

- 3,821 - - - 3,974 - - - 4,133 - - - 4,298 - - 4,448 - - -

Oil expeller operating skills

- 2,802 - - - 2,914 - - - 3,031 - - - 3,152 - - 3,262 - - -

Beverage Production

Bottling Skills - - 4,776 - - - 4,967 - - - 5,166 - - - 5,372 - - 5,560 - -

Transportation skills

- - 2,653 - - - 2,759 - - - 2,870 - - - 2,984 - - 3,089 - -

Bakery and Confection

Baking Skills - - - 11,080 - - - 11,634 - - - 12,216 - - - 12,827 - - - 13,404

Pastry Cooking Skills

- - - 8,618 - - - 9,049 - - - 9,501 - - - 9,976 - - - 10,425

84Proposed number of trainings depicted in table are calculated by proportionately distributing (based on the percentages gathered from the quantitative survey and opinions from the sector experts) expected number of employees/trainees(in food processing sector) among top most required training courses

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Category Courses 201583F

84 2016 2017 2018 2019

VAF EO BP B&C VAF EO BP B&C VAF EO BP B&C VAF EO BP B&C VAF EO BP B&C

ery Chocolate Making Skills

- - - 7,387 - - - 7,756 - - - 8,144 - - - 8,551 - - - 8,936

Biscuits Dough and Batter making Skills

- - - 9,234 - - - 9,695 - - - 10,180 - - - 10,689 - - - 11,170

Total 210,142 222,920 236,504 250,944 265,042

Rate of increase in workforce (%)

5.73 5.74 5.75 5.32

VAF-Value Added and Frozen Food Products EO-Edible Oil BP-Beverage Production B&C-Bakery and Confectionery


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7.3.9 It can be seen that during 2019-2020 the demand for trainings in the Food Processing Sector would be about 265,042 (the same for 2015 is 210,142, 2016 is 222,920, 2017 is 236,504 and for 2018 is 250, 944). The cumulative demand for trainings in the next 5 years (2015-2019) is estimated to be 1,185,552. Further it can be derived that majority of the trainings would be required for sector specific skills followed by sector non-specific skills in coming years. Based on the grid above the key skills which require maximum number of trainings in years to come are mentioned below;

Food technology/bio technology, Food Preservation, Food Quality Control, Plant and machine operating and repairing skills, Cooking and frying techniques, Bottling skills, Technical knowledge of the product, Baking skills etc.

Demand and Supply Scenario for Food Processing Key Skills’ Trainings during 2019 7.3.10 The total number of seats available within TSPs catering to this sector (including all sub-sectors) for the period 2014-2015 is mentioned in below table. We have assumed the same average CAGR growth rate of 5.75% as assumed above for demand projection 84F

85, to project the supply figures during period 2019-2020. Based upon our projections (demand projections; Table 55 above) the gap between the total number of seats available and the estimated potential TVET trainees within the sector is given as under:

85Demand Projection Section, Section 7.3.3


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TABLE 56: DEMAND AND SUPPLY SCENARIO-2019

Category Courses

2015 2019

Skills Demand

(SD) No. of Seats

Available (SA)

Gap expected in Demand and

Supply (SA-SD)

Skills Demand

(SD)

No. of Seats

Available (SA)

Gap expected

in Demand

and Supply

(SA-SD)

CORE AND NON SECTOR-SPECIFIC SKILLS

Managerial and Administrative Skills

8,427

118 (8,309) 10,626 147

(10,479)

Communication Skills

3,757 45 (3,712) 4,902 56

(4,846)


318 15 (303) 371 19

(352)

Numeracy Skills

6,113 188 (5,925) 7,729 235

(7,494)

Food Technologist/ Bio technologist

17,406

612 (16,794) 22,007 765

(21,242)

Food Preservation expert

11,208

450 (10,758)

14,272 562

(13,709)

Food Quality Assurance/Quality Control

14,349

486 (13,863)

17,929 607

(17,322)

Plant and Machine Operating and repairing Skills

23,052

724 (22,328) 28,877 905

(27,971)

SECTOR SPECIFIC

SKILLS

Value added and frozen

food processing


28,804

432 (28,373) 37,580 540

(37,040)

Food Preservation techniques

17,533

324 (17,209) 22,875 405

(22,470)

Food Tasting and Food Grading Skills

13,776

262 (13,514) 17,973 327

(17,646)

Visual Examination for Quality Product/ Sorting /Grading

15,028

216 (14,812) 19,607 270

(19,337)


Technical knowledge of the products

3,821

137 (3,683) 4,448 172

(4,276)

Oil expeller operating skills

2,802

30 (2,772) 3,262 38

(3,224)

Beverage Production

Bottling Skills

4,776 172 (4,604) 5,560 215

(5,345)

Transportation skills

2,653 50 (2,603) 3,089 63

(3,026)


Baking Skills

11,080 288 (10,792) 13,404 360

(13,044)

Pastry Cooking Skills

8,618 144 (8,474) 10,425 180

(10,245)

Chocolate Making Skills

7,387 252 (7,135) 8,936 315

(8,621)

Biscuits Dough and Batter making Skills

9,234

40 (9,193) 11,170 50

(11,120)


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7.3.11 Survey results reveal that almost all the TSPs covered are offering bachelors and Masters/PHD programs (apart from the Star Farms) and these programs covers most of the skills/courses mentioned in above table. None of the TSPs (apart from the Star Farms) offering specific TVET related course for skills mentioned in above table. Therefore short term training programs must be introduced by the TSPs associated with the Food Processing Sector for narrowing the skills supply gap (depicted in figure 26 below). 7.3.12 The demand and supply gap for the years 2015 and 2019 can be better portrayed through figure below. It can be estimated that the total skills/trainings gap (difference between skill supply or number of seats available and skill demand) during 2019-2020 would be about 258,809 (the same for 2015 is 205,158).

FIGURE 26: DEMAND AND SUPPLY GAP- 2015 AND 2019

7.3.13 The growth in the gap between 2015 and 2019 (as depicted in chart above) represents substantial potential for trainings and capacity building in this sector. However, there is a risk in the limited number of seats available in TSPs. We have assumed this figure to remain constant over 5 years for the purposes of projection. In practical terms we anticipate that this figure, barring substantial investments in teaching capacity infrastructure and establishment of new institutes, will actually decrease further raising the gap between demand and supply of TVET training to this sector.

7.4 Conclusions 7.4.1 Though the food processing industry is progressing, it is confronted with significant problems in the areas of skills development, training delivery systems, weak institutional linkages and poor labor market intelligence. The key issues identified through the survey exercise (derived from both qualitative and quantitative surveys) are summarized as follows: Skills Development 7.4.2 Though the capacity of the food processing sector to generate employment is extensive, the workforce available to this sector is unskilled with the majority having no or low level of education or training. Therefore the demand gap for skills is currently large. The skilled workers currently available are those that mainly learn their craft through acquired work experience.

-

50,000

100,000

150,000

200,000

250,000

300,000

2015 2016 2017 2018 2019

Supply

Demand


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7.4.3 The large sized organizations have adopted a policy of investing in the skills of their employees through formal (off-the-job) and on-the-job training. More focus is being placed on “upside” adjustment, where employment and training programs are targeted to upgrade the skills of current employees. This is however much more limited in scope and quantity. 7.4.4 In flatter structures, employers want fewer process workers to do more, and to develop a wider range of personal and technical skills 85F

86.

Training Delivery System 7.4.5 Though there is a strong presence of Technical and Vocational Training Centers for several manufacturing sectors including Food Processing, with more than 700 institutes (both from public and private sector) across Punjab86F

87, the training options in Food Processing sector for desired skills are still minimal.

7.4.6 The current TVET certificate stream relevant to food processing sector is too narrow in its scope and does not cover the large variety of skills training that takes place in the sector. Two way cross-over between the academic and the applied streams is also lacking in the system. The absence of a well-articulated qualification system relevant to food processing sector is also a major structural shortcoming 87F

88.

7.4.7 Though our research is unable to ascertain what exact proportion of training service providers get into contact with the employers, it is highlighted during qualitative interviews that many companies undertake trainings on their own without any contact with trainers due to no/limited training opportunities 88F

89.

7.4.8 Lack of active involvement in course design and selection is also observed at the strategic planning phase within TSPs. Further a lot of dependency (course selection, curriculum design and course up gradation etc.) on the governing bodies like Higher Education Commission (HEC) and Punjab Board of Technical Education (PBTE) in this regard is also reported. Weak Institutional Linkages with the Industry 7.4.9 The role of the industry within TVET is negligible in views of key stakeholders. In views of sector experts the suggestions of important stakeholders, such as the business sector experts, are not adequately taken into account. The TVET sector does not benefit from good collaboration and input from the business sector in;

Identifying trades /skills that matches with industry need Shaping the content of the curriculum Updating of the tools/equipment /teaching materials etc. Selection, recruitment , assessment and training of trainers Assessment of students Certification of study programs

7.4.10 The findings of survey results also reveal that there are perennial complaints from employers on availability of required skills in the sector. They believe that not only there is a shortage of availability of required skills in the market; the ones that are available are not up to the desired level required by the industry.

86Data retrieved from: ’Institute for employment studies’ website 87Data retrieved from: http://www.navttc.org/TVET_Pakistan.aspx 88 Data retrieved from: Qualitative interviews with sector experts 89Qualitative findings from sector experts: Chapter 6, Sections; 6.6.5 and 6.6.6

http://www.navttc.org/TVET_Pakistan.aspx


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Labor Market Intelligence 7.4.11 The sector needs better labor market intelligence to provide insights on current trends, issues and challenges available to the sector in terms of both, demand and supply of skills. Specialized Technical and Vocational Training Institutes 7.4.12 Survey results also indicate that there are no specialized technical and vocational training centers offering registered programs specific to trades related to food processing sector under study that could produce the skilled workers for some jobs that are in demand or hard-to-fill jobs. The technical and vocational training centers in the regions under study are neither offering trade-related programs (Food Processing sector under study) nor are equipped to do so (training facilities, equipment, trainers). They require up- gradation in terms of teachers’ capacity, harmonization of machinery and equipment and curriculum up gradation in line with industry requirement of the province. Other Gaps 7.4.13 Other gaps identified through survey exercise (both qualitative and quantitative) are;

There are very few specific programs in the region for TVET Qualifications relevant to food sector (also majority sample institutes were not offering any food sector specific TVET programs) that could produce the skilled workers for some in demand/hard-to-fill jobs

Most training institutes are unable to reach employees in the informal sector. The available training options are limited to urban males from relatively better

economic background. General labor/unskilled workers (in elementary job roles) neither have resources nor

time to enroll in training courses of any kind The current curriculum is neither responsive to industry needs nor focuses on the

personality development of the students 89F

90.

7.5 Recommendations

7.5.1 The recommendations highlighted below are aimed at filling the skills’ gaps through enhancing the skills of existing workforce and aligning it with skills needs of potential employers. These are as follows;

a) PSDF may appoint an expert panel group represented by processed food industry, training

providers, the government officials and other stakeholders to seek consultation / cooperation in;

Assessing the “Demand” side of the market to provide a clearer picture of sector specific occupational needs and skills requirements

Development of the curricula, training material for the training providers, selection or recruitment of trainers, training of trainers etc.

90Chapter 6: Sector Experts Interviews’ findings , section 6.8.6


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b) PSDF should provide guidance and support to the their funded training service providers

in;

Devising a training delivery system that is more responsive to the industry needs

Providing and supporting access to specialized expertise, resources and equipment to facilitate development in specialized skills

Offering part-time and evening-shift programs, using their existing premises after normal institutes timings

Offering students internships and co-op education (work-and-study) opportunities.

c) PSDF can increase the role of industry by involving them in increasing the role of

entrepreneurs through;

Working on increasing industry investment on skills development to produce quality

workforce

Encouraging industries in providing financial support to institutes offering TVET relevant to

their industry

Expanding the scope of On-the-Job Training by;

Offering placement incentives to encourage employers to provide on the job trainings

(specially to students of TSPs)

Provide funding for employers to create summer job opportunities for students

d) PSDF may identify and focus on training service providers that have strong presence across

Punjab and/or possess ability to respond to the industry needs by introducing diversified range of programs to alleviate current skill shortages through;

Out-Reach Programs-for the youth and neglected populace by offering short-term

skill development projects –preferably in the clusters or regions where training facilities are not at all available.

Developing Technology Specific or Sub-Sector Specific Courses – These would potentially include need driven courses/ course material for technology specific or sub-sector specific skills requirements that cannot otherwise be learnt in generic classroom based environments

Customized/Specialized Courses- Develop and offer need-based courses

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TABLE 57: SKILLS SCENARIO IN FOOD PROCESSING SECTOR S

kil

l cl

ass

ific

ati

on

Skills required Skill gaps Hard to fill vacancies Formal Training Options –

Training Institutes /Universities

Measures taken to Fill the Skill Gap

Ba

sic

/S

oft

Sk

ills

Literacy and numeracy skills

Communication skills ICT Skills Problem Solving Skills Working with others

Generally the level of skills is much lower than what is required under each job group. The main reason being low and poor quality of education at each level.

Formal training on enhancing core and basic skills are not available. However English language skills, English for employment and ICT form part of curriculum at university level programs and DAE at technical training institutes/college.

None –only learn while on job

Pe

rso

na

l sk

ills

Flexibility , adaptability, maturity, attitude towards work

Willingness to learn and work hard, ability to perform and manage multiple tasks , honesty, loyal

Positive personal traits employers look for are getting extinct. Hardworking, trustworthy and loyal

employers are HARD –TO-FIND across all levels

None None

Personal hygiene Manual dexterity Physical fitness

Lacking amongst general laborers, workers performing tasks elementary in nature and plant /machine operators

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kil

l cl

ass

ific

ati

on




No

n s

ect

or

spe

cifi

c sk

ills

Research and Development Skill

Food Technologist/Bio technologist

Food Processor/ Preservation Expert

Food Quality Assurance /Quality Control

Lack required knowledge backed by practical exposure as per industry requirement.

Research and Development Expert Food Technologist Bio Technologist Food Processor/ Preservation Expert Food Quality Assurance /Quality Control Professionals Advance level programs offered at university level, available to urban males from relatively well-off background. The sector is abandoned by youth due to lack of awareness for a career path into food processing industry

PhD, M.Sc. , B.Sc. and DAE programs available at university levels only

More focus is being placed on “upside” adjustment, where employment and training programs are targeted to upgrade the skills of current employees.

Sale And Marketing Skills Procurement Skills People Management

Skills Training Skills/Coaching

Skills

Lack practical experience, expertise in customer service, understanding and solving customer problems and handling difficult customers; poor negotiation skills , keeping track of customers/suppliers , team managing skills,

Sales Professions specific to food sector – expertise gained developed over time hence scarce and high in demand

Off- the- job training options generally of short duration are limited to employees of large sized organizations working at senior levels.

None –only learn while on job

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kil

l cl

ass

ific

ati

on




Technical Skills Plant and machine

operating skills Tools And Equipment

Handling Plant/Machinery/Tools

and Equipment Maintenance, Repair and Sanitization

Lack overall operational /technical skills required to operate, maintain, repair, clean, sanitize. Training of staff.

Off- the- job training options on new plant /machine are limited to senior staff –production manager, plant engineer etc. On-site training options are limited and available for operator where suppliers of newly acquired plant & machinery provide training at production site-

Learn while on the job by working under direct supervision of expert as helper /assistant

Good Manufacturing Practice

Good Hygiene Practice Health and Safety at

Work Place First Aid in food

Processing

Lack of awareness amongst both the employers and employees on the need and importance of practicing hygiene and safety at workplace efficiently and effectively. Realize the need only when accidents /unforeseen events takes place

None None –

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kil

l cl

ass

ific

ati

on




Elementary Skills – cleaning, sorting, storing, washing of raw material and other ingredients

Ability to perform the task efficiently and effectively without causing wastage.

None

Learn the skill while on the job in a short time. Training is a continuous process and employees hire raw hands and train according to their need. Trained / staff are generally not available. Both, employee turnover and availability are high at this level.

Se

cto

r sp

eci

fic

skil

ls

Agri based Products ( sugar, grains and pulses, fruit and vegetable ),

Edible oil and Fats Beverage

Technical expertise required at production unit is lacking.

Below mentioned courses form part of curriculum at University level program and DAE at technical training institutes/college.

Bakery Products

Learn while on the job by working under direct supervision of expert as helper /assistant

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kil

l cl

ass

ific

ati

on




Bakery and Confectionary Value added products

and frozen food, Processed Food

The key skills (craft related) required to achieve the desired results are often not shared with assistants and helpers. The expertise is generally gained over time by performing routine task again and again and obtaining tips generally from USTAADS/KARIGARS or by closing

and Technology Baking science and

Technology Beverage

Technology Cereal Technology Confectionery and

Snacks foods Edible Oils and Fats-

Industrial Processing and Technology

Fruit and Vegetable Processing

milling of cereals Sugar technology

Options for TVET are minimal.

Basic/Craft related skills (informal/home based productions/smaller sized units) are learnt while working under direct supervision of USTAADS/KARIGARS as helper /assistant.

food processing sector skills study -...

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